Budget - ISA's for at least another 5 years !

deemy2004

ISA Savers win, though it has been expected for a long-time that the ISA's would be extended, at least now we have it in writing.... That ISA's will stick around for at least another 5 years. AT £7k per year !

So this does make cash and shares ISA's a viable alternative to traditional pension funds.

JCL

deemy2004 wrote:

So this does make cash and shares ISA's a viable alternative to traditional pension funds.

I would argue not purely because by paying into a pension you can't then access that money before retirement.

If you have the discipline not to plunder an ISA then yes it could be an alternative.

Kazza242

Great to hear that Deemy2004, but did they also make any reference to retaining the current cash isa allowance?

A few months ago I heard they were considering keeping the £3K limit from and beyond April 2006, but I've heard nothing since.

monki_man

Great news indeed. Big up gordon brown! I never have thought ill say that!

Paul_Varjak

From what I heard, all the current ISA allowances remain - no increases or decreases!

scotsw2

The statement says "extending the existing higher ISA limites to APril 2010 to promote saving"

I think that means the cash element remains at £3,000?

Leia_Stephens

scotsw2 wrote:

The statement says "extending the existing higher ISA limites to APril 2010 to promote saving"

I think that means the cash element remains at £3,000?

scotsw2, I hope too that we can expect the cash element to remain at £3,000 .

Leia

deemy2004

Kazza242 wrote:

Great to hear that Deemy2004, but did they also make any reference to retaining the current cash isa allowance?

A few months ago I heard they were considering keeping the £3K limit from and beyond April 2006, but I've heard nothing since.

Quite right... In my eagerness to post I did not mention that it is still a whopping £7k per year !!!

Another point - from 6th April 05 they are dumping the useless insurance element, and so you can invest a whopping £4k in the stocks element !!

SO great news for ISA savers for the next 5 years.
£3k in cash, £4k in stocks.

deemy2004

JCL wrote:

I would argue not purely because by paying into a pension you can't then access that money before retirement.

If you have the discipline not to plunder an ISA then yes it could be an alternative.

Yes, savers have to be disciplined, and not touch the golden cash ISA egg

Now its okay you not touching the pension fund, but that does nto mean its not going to get raided by others !

JCL

Indeed.

I was looking at it more from the savers discipline point of view.

Shinds

Great news!