Over 50s take advantage of increased ISA allowance

Over 50s were given an extra ISA allowance ahead of the rest of the population recently and it seems that they are taking advantage and making investments.

The ISA allowance has been increased by over 40 per cent for over 50s to £10,200. Everyone else will have to wait until April next year. Meanwhile over 50s investors are buying into a diverse range of funds to take advantage of recent market rises.

Hargreaves Lansdown said that the top fund for investors has been Artemis Strategic Assets. It has a higher risk profile than many funds, and seems to demonstrate an appetite for making money for an age group usually happy to invest in more defensive funds.

Three Invesco perpetual funds – Distribution, Income and Monthly Income Plus – also figured in the ten most popular funds for the over 50s.

Other funds to appear in the top 10 for over-50s included Insynergy Odey, JO Hambro UK Equity Income, M&G Optimal Income and Old Mutual UK Dynamic Equity.

The £3,000 increase in ISA allowance (tax-free) was announced in April’s budget by Chancellor Alistair Darling and came into force at the end of October.

Ben Lundie, head of development at Vantage said that the new rules were “vital”, and added: “Self-provision will be the biggest way of providing for old age.”

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