Voters call for £20,000 ISA limit

The research asked people what policies they would most like to see implemented by the next Government to encourage saving and investing. Over a quarter (27%) said they want to see an increase in the tax-free ISA allowance from £15,240 to £20,000.

Another quarter (26%) said they wanted to see the introduction of a Bonus ISA, which would allow any unused tax allowance to roll over from one year until the next.

Willis Owen’s research also reveals that one in four people (25%) plan to save and invest more this tax year than they did in the last one, suggesting ISAs could see a surge in popularity.

Jason Chapman, Managing Director at Willis Owen, said:

“With ISAs continuing to be a popular and straightforward way to save and invest tax-free, people want to use them more flexibly to get the most out of their finances, especially as the economy improves. The Coalition Government recently introduced Help to Buy ISAs, but with no manifesto pledges from the major political parties on a further increase to the limit or ‘roll-over’, the next Government is under pressure to give savers what they want.”

According to the research, older people are most likely to say they want a new £20,000 ISA allowance, with just under a third (32%) calling for an increase. Older people are also most likely to want an unlimited ISA for people taking a lump sum from their pension, with 18% hoping this will be introduced under the next Government.

Almost half (42%) of young people expect to save and invest more in the next year compared with only 16% of those aged 55+, suggesting a turnaround in typical savings attitudes.

One in five (21%) people say they are willing to take reasonable or substantial risk when it comes to their finances, up from just 15% in 2014 and 14% in 2013.

Jason Chapman added:

“The introduction of new pension freedoms earlier this month means that the baby boomer generation has a keen appetite for new ways to invest. With the last Government bringing in the biggest changes to retirement income in a generation and people looking to save and invest more in the coming months, savers and investors want big things from the next Parliament.”