PSA and ISA allowance- time for gov change?

Doctor_Who

nic_c said:

Albermarle said:

nic_c said:

jimjames said:

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

How can the average person earning £25k or so fill an ISA every year? I can't see any rationale for increasing the limits.

Isn't the average wage outside London supposed to be £33K?

The problem is that there are three ways to calculate the average.

Mean average is everybody's salary added up and divided by the number of people. This is what probably gives the figure of 33K as it is skewed up by the Top 1 % of very high earners ( or even 0.1%)

Median average is if you lined everybody up in a row from low to high salary, it is the person in the middle. This gives a figure around £28K I think

Mode average is the salary that the largest number of people earn. This used to be in the low £20's but maybe has crept up to £25K with inflation, wage rises etc.

Statista.com had £33k as median full time wage for 2022

Depends on whether you talk about average wage or average full time.

The median wage including those on less than full time is closer to £25k

Surely it makes little difference if it's £25K or £33K. jimjames said: How can the average person earning £25k or so fill an ISA every year? I can't see any rationale for increasing the limits. Finding £20K to put in an ISA each year out of either amount is probably out of reach of most people after tax/rent/mortgage/bills etc.

boingy

Not every year. But maybe one year. 

Millyonare

UK tax is at a 70-year high (and rising). Future taxes are only going in one direction -- up and up and up. They are not coming down. We as a country have entered a new pseudo-communist era where the UK state is quietly taking control of how we think, speak, act, travel, and spend. Your chances of getting more (net) PSA and ISA allowances are, basically, zero.

Albermarle

nic_c said:

Albermarle said:

nic_c said:

jimjames said:

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

How can the average person earning £25k or so fill an ISA every year? I can't see any rationale for increasing the limits.

Isn't the average wage outside London supposed to be £33K?

The problem is that there are three ways to calculate the average.

Mean average is everybody's salary added up and divided by the number of people. This is what probably gives the figure of 33K as it is skewed up by the Top 1 % of very high earners ( or even 0.1%)

Median average is if you lined everybody up in a row from low to high salary, it is the person in the middle. This gives a figure around £28K I think

Mode average is the salary that the largest number of people earn. This used to be in the low £20's but maybe has crept up to £25K with inflation, wage rises etc.

Statista.com had £33k as median full time wage for 2022

Depends on whether you talk about average wage or average full time.

The median wage including those on less than full time is closer to £25k

I think probably you can pluck whatever figure you like out between a certain range. A paradise for politicians selectively quoting whichever figure suits them best.