Cash ISAs capped at 12,000 (a year)

friolento

Malchester said:

At least they have listened to comments about older people using ISAs to provide retirement income. So, being over 65 I will still be able to deposit the full £20,000 in a cash ISA. Being over 65 has some advantages!!!!!!!!

Just watch out for the 2% increase in non-ISA savings interest (2027) and dividends (2026)

Albermarle

mwarby said:

wmb194 said:

mwarby said:

I guess you could always invest the remaining £8k in a money market fund like CSH2, although it has the downside of no protection in the unlikely event of CSH2 failing

This assumes cash-like investments aren't disallowed.

Lots of rather safe options compared to full on investing

Government bonds
Bond in general (especially funds which use ultrashort bonds)
Money market funds

I guess the hope is that by needing to find a fund that meets your risk tolerance, many will consider something a little more like investing like index funds, for at least some of their money 

I would suspect newbie investors will normally not choose ( or be guided to ) high risk/volatile investments like stock market index trackers.
A multi asset fund is more likely with a small range from cautious to adventurous ( like Vanguard Lifestrategy or HSBC global strategy)

flaneurs_lobster

Albermarle said:

mwarby said:

wmb194 said:

mwarby said:

I guess you could always invest the remaining £8k in a money market fund like CSH2, although it has the downside of no protection in the unlikely event of CSH2 failing

This assumes cash-like investments aren't disallowed.

Lots of rather safe options compared to full on investing

Government bonds
Bond in general (especially funds which use ultrashort bonds)
Money market funds

I guess the hope is that by needing to find a fund that meets your risk tolerance, many will consider something a little more like investing like index funds, for at least some of their money 

I would suspect newbie investors will normally not choose ( or be guided to ) high risk/volatile investments like stock market index trackers.
A multi asset fund is more likely with a small range from cautious to adventurous ( like Vanguard Lifestrategy or HSBC global strategy)

They would have (I've not looked) 5-10% of UK assets? Don't see how that's really going to promote investing in UK companies which I thought was the point?

Albermarle

flaneurs_lobster said:

Albermarle said:

mwarby said:

wmb194 said:

mwarby said:

I guess you could always invest the remaining £8k in a money market fund like CSH2, although it has the downside of no protection in the unlikely event of CSH2 failing

This assumes cash-like investments aren't disallowed.

Lots of rather safe options compared to full on investing

Government bonds
Bond in general (especially funds which use ultrashort bonds)
Money market funds

I guess the hope is that by needing to find a fund that meets your risk tolerance, many will consider something a little more like investing like index funds, for at least some of their money 

I would suspect newbie investors will normally not choose ( or be guided to ) high risk/volatile investments like stock market index trackers.
A multi asset fund is more likely with a small range from cautious to adventurous ( like Vanguard Lifestrategy or HSBC global strategy)

They would have (I've not looked) 5-10% of UK assets? Don't see how that's really going to promote investing in UK companies which I thought was the point?

OK, maybe not good examples, although Life strategy is 25% UK 
 Maybe a new multi asset range with >50% UK ?

borders

I await the details on when the over 65 limit kicks in. The tax year you turn 65, the tax year after you turn 65 or actually on your birthday? I will be 65 in 2027, so the timing is relevant for me. And even more so for my wife who's birthday is the 6th April. 

Audaxer

Malchester said:

At least they have listened to comments about older people using ISAs to provide retirement income. So, being over 65 I will still be able to deposit the full £20,000 in a cash ISA. Being over 65 has some advantages!!!!!!!!

It's good that there is still that option for us over 65s, but many also invest in S&S ISAs to provide income in retirement. 

EthicsGradient

Time2Go_25 said:

Audaxer said:

knigma said:

Any idea what this means for transferring £20k+ from a S&S ISA to a Cash ISA, and how this will be restricted?

I don't think transferring existing ISA balances would be restricted as she only referred to changing the annual ISA allowance split, and not until 2027. 

One of the questions I get, is if you put your £20k in a S&S ISA, can you transfer it to a cash ISA

Yes, that is a good question - what would they do, say "8k must remain in the S&S ISA"? It becomes very difficult to track all the money (especially with contributions over multiple years, and growth).

PixelPound

If you transfer more than £12k from current year, it will be taxed 

Malchester

Audaxer said:

Malchester said:

At least they have listened to comments about older people using ISAs to provide retirement income. So, being over 65 I will still be able to deposit the full £20,000 in a cash ISA. Being over 65 has some advantages!!!!!!!!

It's good that there is still that option for us over 65s, but many also invest in S&S ISAs to provide income in retirement. 

Yes I have done so in the past but now I am the age I am I no longer add money to investments. All my new ISAs are cash.

EthicsGradient

PixelPound said:

If you transfer more than £12k from current year, it will be taxed 

Source? That way of putting it sounds exceedingly unlikely. Remember what "transfer" means for ISAs, as opposed to "contribute".

Do you mean "that was contributed during the current year"? Well, maybe, but what if someone contributes 20k to an S&S ISA in 27-28, and then transfers the entire balance on the first day of the 28-29 tax year to a cash ISA?