09 Mar 2015

A question about : Why do you leave it till now to use your 14/15 isa allowance?

I can never understand why people leave it till the last minute to use their isa allowance, thus wasting an entire years worth of growth and income!

I can think of a few reasons, ignorance, laziness, head in the sand, distrust of financiers.

I think it's the same problem with pensions, something people only think about when they approach 50ish, and then it's getting too late!

On the other hand I guess it's a good thing that the sp age is increasing so 50ish year olds will now have a few more years to work and save into their pension and isa.

Cheers fj

Best answers:

  • If you are talking S&S ISAs, I might just about agree with your conclusion. Although not everybody wakes up on the first day of a new tax year with the ready cash to max the ISA allowance. This is particularly true now that the allowance is Ј15K.
    If you are talking cash ISAs, I profoundly disagree with you. It would have been incredibly smart not to use the 2014/15 ISA allowance in a cash ISA as yet. As the money would have earned a lot more in interest paying current accounts, and in regular savings accounts. A cash ISA would indeed have been wasting a good part of an entire years worth of growth and income.
    If you want to stay in cash, it might even be incredibly smart not to use that 2014/15 allowance at all.
    Pensions might be a slightly different issue, but I am sticking with the title of your thread.
  • You might not have the cash to put in Ј15k, I don't. But I setup the S&S ISA to pay in monthly over the whole year.
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