MSE News: Martin Lewis suggests alternative to cutting cash ISA limit – a 'starter investment ISA'

NUMBERONEFAN

I don't think it's a great idea to try and understand another type of ISA. I think Martin should have a brainstorming session with Damien Jordan (the Martin Lewis of investing?) so education about investing can be encouraged and made more widely accessible.
I have saved so much through listening to Martin's tips, so as a newbie to investing, it's hard to see investment values go down as well as up. I now understand that this is what investments are expected to do, as well as growing over the long term by being investment in the right funds🤞

Albermarle

The ISA allowance of £20K ( for cash and investing) is already very generous by international standards, so I would not think the Govt will be looking to increase it, even by just £1K.

An incentive to start a S&S ISA ( with say a minimum of £1K) may work, but if I was the Chancellor I would be wary about encouraging the uninitiated/inexperienced to invest. I can see the headlines now

Mum of three/Granny/ war veteran etc  loses Thousands after being encouraged to invest by Labour Govt 

Hoenir

About time everything was simplified not made more complex

boingy

Most folks are already confused about ISAs. Adding another variant will really not help.

TM74

Doesnt need another one! Thats the last thing ppl need .
The chancellor needs to just stick to the 20k and not tempt ppl to risk their monies into stocks n shares.just to help them out! 

2hc9kmju

I’m a retired Chartered Accountant and manage my ISA and Personal Pension fund investments. Though the Treasurer may have identified a key issue helping people to long term financial security, the suggestion that reducing the cash ISA limit WON’T have the impact she’d like. People don’t invest in the market due to fear of losing money and because they don’t understand how markets work. What is needed is to encourage young people to enter the market, but to achieve this they need education on how to manage their investments so they don’t see it as a bet, which always loses. Essentially gambling, which it isn’t. 

Unfortunately, though an interesting idea, I don’t think Martin’s suggestion would incentivise those who are unduly scared by the thought of investing. 

What is needed is education in personal financial matters at school , so when people join the workforce they have an essential understanding of financial matters that they need to deal with. 

Even my degree qualified children don’t have the skills, and so are reticent in investing in shares. 

friolento

All put on hold
 https://forums.moneysavingexpert.com/discussion/comment/81536835/#Comment_81536835

EthicsGradient

InvesterJones said:

bjorn_toby_wilde said:

If you want more investment in the UK then more carrot and less stick might be an idea. What about raising the threshold for CGT for a start off?

Or better, dividend allowance - that might encourage people to invest in dividend paying stocks.. which co-incidentally make up a large proportion of UK listed stocks compared to say the US..

S&S ISAs are already dividend and capital gain tax-free for all amounts, with a contribution of up to £20k each year. There is no need to add on more tax incentives beyond that, as if most people have over £20k of cash to either save or invest, but can't afford to pay tax on the marginal dividends and gains above that.

Albermarle

TM74 said:

Doesnt need another one! Thats the last thing ppl need .
The chancellor needs to just stick to the 20k and not tempt ppl to risk their monies into stocks n shares.just to help them out! 

Suggest you read the very sensible post after yours.

By being over anxious about investing, people are losing out significantly in the long term.

Albermarle

People don’t invest in the market due to fear of losing money and because they don’t understand how markets work. What is needed is to encourage young people to enter the market, but to achieve this they need education on how to manage their investments so they don’t see it as a bet, which always loses. Essentially gambling, which it isn’t. 

In addition most/more employed people now have a pension that is invested in the financial markets.
We see from posts in the forums, that many are only vaguely aware of this and have little/no understanding of how their pension is invested.