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New cash ISA limit for those turning 65 during the tax year
I will turn 65 in May 2028. Will I then qualify for the over 65 cash ISA limit from my birthday, or will I have to wait until the following April to qualify?
Comments
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Who knows?
I don't think the details have been ironed out yet.2 -
So as I turn 65 in March 2028, I would qualify the previous April 2027?
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No-one knows yet
Remember the saying: if it looks too good to be true it almost certainly is.3 -
As investments are supposed to be a long-term consideration, the Government ought to get a move on sorting out the details as the regards proposed changes to the ISA rules that are supposed to come into effect in little more than a year's time.
I am over 65 and as of now have no idea exactly how the changes will apply in my case. This is a ridiculous situation - particularly regarding how cash balances in S&S ISAs and 'cash like instruments' will be treated.
1 -
Not the purpose of the thread.
But what another silly rule - maybe those under 65 don't want to risk their cash either so prefer lower returns for their full investment being secure and fully FSCS protected.
Arguably young people have more need to save as well - for house deposits and other goods. The lifetime isa age limit of 40 is also silly - quite a few over 40s still rent so it makes sense for the government to them help buy a home so they don't have to pay their rent via housing benefit in retirement at far greater cost to the taxpayer.
Keep it simple Chancellor!!
2 -
It takes time to sort out the details, but I haven't seen anything suggesting that anything changes ISA-wise for over-65s, i.e. all the proposed tweaks are specifically for under-65s?
The government will make the following changes to ISAs from 6 April 2027:
— the annual subscription limit for a cash ISA will be set at £12,000 for investors under the age of 65
— for investors aged 65 and over the annual subscription limit for a cash ISA will remain at £20,000
The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs:
— no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs
— tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’
— a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA
These rules will apply to investors under the age of 65.
Industry will be consulted on the draft legislation, which will be made by amendments to the ISA regulations, and laid before Parliament well ahead of April 2027.
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It takes time to sort out the details, but I haven't seen anything suggesting that anything changes ISA-wise for over-65s, i.e. all the proposed tweaks are specifically for under-65s?
As long as the platforms are prepared to offer different age-related products
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Well, yes, but I'd be amazed if providers decided not to support over-65s (such as the poster I was replying to), given the fact that the existing products should continue to work for that cohort with little or no adjustment.
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True…………
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If the Govt rushed it and the providers were not ready, then there would be a lot of complaining about that.
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