From 6th April 2017, the personal ISA allowance is increasing to £20000.
Over the years, the amount you can pay into an ISA has been steadily increasing, but this represents a significant increase and means that you now have an even better opportunity to accumulate tax efficient savings and investment. For couples, the total amount is £40000.
Over the years, many people have been paying into ISAs and have accumulated very large fund values. Unlike pensions, there is no lifetime limit on the amount that can be accumulated. For those unable to make pension contributions or approaching their annual or lifetime limits for pension funds, this provides a great way to generate wealth.
ISAs for Retirement
During retirement, an accumulated ISA portfolio offers a very useful way to provide a tax efficient retirement income. This could supplement your pension income if you have one. Approaching retirement, growth funds can be switched to income yielding funds. Unlike pension income, ISA income is currently, entirely free of income tax.
For more information on this and other tax efficient investments, please contact Barry Sears at Professional Wealthcare.
This article is intended for guidance only and is not advice.
Remember, it is important that you seek a personal recommendation before choosing a plan that is suitable for your needs.
Investment returns may go down as well as up.