Pensioner investments

francohoops

My father is a pensioner, his income comes from renting property and he is in the 40% tax bracket.


He has no personal pension, he relies on his income from property plus his savings.


Can anyone suggest some alternatives to savings accounts, bonds etc. which are paying low rates? He uses his ISA allowance each year and took out some pensioner bonds last year.


It just feels that being taxed @ 40% on low rate deposit accounts feels inefficient.


Thanks
F

jimjames

Investments are an alternative to savings accounts if he has enough cash reserves and his main aim is to get a higher income. He can even put investments in a S&S ISA - not sure if that is what you meant when you say he is already using his ISA allowance. You'll get investments paying up to around 4% which is tax free inside an ISA.

If he isn't using current accounts then that's also an option for his cash savings and they can pay up to 5%.