Isas 'a popular choice' with savers over 50

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Isas 'a popular choice' with savers over 50

Thu 28th Jan 2010

Putting money into Isas has grown in popularity for savers over 50, Virgin Money has announced.

As a direct response to the government increasing the limits placed on Isa contributions for people aged over 50 from £7,200 to £10,200 a year, there has been an increase in the sums that individuals have paid in.

The biggest increases have been seen in income funds, with contributions going up by 130 per cent between October 5th 2009 and January 5th this year.

Additionally, figures from the Investment Management Association have shown that a record net £23.6 billion was invested into retail fund sales in the 11 months to 30th November 2009.

Grant Bather, spokesman at Virgin Money, said "With the Isa allowance of £10,200 to be extended to all savers in the new tax year, we would urge all investors to consider making the most of the increase in the tax efficient allowance."

For investors who prefer to put their money into shares, Virgin Money reported in December that advisors were optimistic about emerging markets this year.

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