New Over 50s Cash ISA Allowance
We all know Britainís finances are in a mess right now. But if youíve been keeping an eye on the news lately, youíll know that much of the blame is being put on the problem of our living longer.
Now a new report from the Institute of Directors is calling for the state pension age to be raised to 70 in an attempt to deal with this ìproblem”.
No-one yet knows what the government will do. But pretending this problem will just go away without affecting each and every one of us is naÔve and frankly dangerous, if youíre hoping for a comfortable requirement.
What seems inevitable is that weíll all have to pay a lot more attention to our personal finances.
Keeping your fingers crossed that the state will provide isnít an option anymore. And in any case, with the state pension now so small and with private pensions complicated beyond belief (as well as failing to provide any idea how much income theyíll actually produce) itís time to look at what else you can do.
As the IoD reportís author, Malcolm Small, makes clear: “Both state and private pension systems have now become so complex that people are becoming disengaged from pension saving and are looking for alternatives.
So what can we do about it?
If you need more proof that youíll be expected to look after yourself in retirement, then this monthís announcement that ISA limits are being increased from this month for the over 50s, should be it.
The new over 50s ISA allowance stands at £10,200, that up a whopping £3,000 from the previous limit of £7,200.
This means that anybody aged 50 or over this tax year (before April 5 2010) will be eligible.
Itís not often that the government gives us the opportunity to make ourselves wealthier and so this is an opportunity to grab straight away.
The basic rule is that you can invest the whole of your £10,200 into a stocks and shares ISA, or up to £5,100 invested into a cash ISA and the rest into a stocks and shares ISA.
Sounds simple, but with such a huge array of ISAs available, choosing the one that suits you best can be a minefield.
But there is a simpler way.
Need to Know What Youíre Getting? Or Ready to Take a Gamble?
Basically, itís a good idea to decide what youíre after out of these two options:
Compare ISA products.