{"id":278511,"date":"2025-07-20T23:18:11","date_gmt":"2025-07-20T23:18:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/278511\/"},"modified":"2025-07-20T23:18:11","modified_gmt":"2025-07-20T23:18:11","slug":"warning-for-millions-aged-55-to-64-who-have-money-held-in-an-isa","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/278511\/","title":{"rendered":"Warning for millions aged 55 to 64 who have money held in an ISA"},"content":{"rendered":"<p>Four million people aged 55 to 64 have ISAs worth an average of just over \u00a340,000, it has emerged, with UK households urged to switch.<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/1753053491_101_0_cash.jpg\" alt=\"Warning for millions aged 55 to 64 who have money held in an ISA\" loading=\"eager\"  \/>Warning for millions aged 55 to 64 who have money held in an ISA<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">A warning has been issued for millions of people with cash stashed away in ISAs. <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/all-about\/your-money\" target=\"_self\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">Four <\/a>million people aged 55 to 64 have ISAs worth an average of just over \u00a340,000, it has emerged, with UK households urged to switch.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">While ISAs are popular because money can be withdrawn at any time, pensions come with generous tax relief. NFU Mutual said a higher rate taxpayer could effectively collect up to 41.6%<a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/all-about\/your-money\" target=\"_self\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\"> more by putting cash into a pension than an ISA.<\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Sean McCann, Chartered Financial Planner at the firm, said: \u201cUnless you\u2019re about to retire, pensions can seem like a bit of a dull subject \u2013 but if you\u2019re in your fifties or older, they can offer a whole new way of thinking about investment.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \"><a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/motoring\/motoring-news\/drivers-face-fines-dropping-parking-32076094\" target=\"_self\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\"><strong class=\"Strong_strong__e2x35\">READ MORE Drivers face fines for dropping parking tickets on floor in UK crackdown<\/strong><\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">\u201cOnce you reach 55 you can take money from your pension either as lump sums, income or both.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">&#8220;This means they can offer an attractive alternative to ISAs if you\u2019re looking to build up funds for the future.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">\u201cLatest figures show 3.9 million people aged between 55 and 64 hold ISAs with an average value of \u00a340,945 \u2013 but many of them could be better off topping up their pension and claiming the tax relief.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">\u201cThe tax boost you get when you put money into a pension can make a huge difference to returns.\u201d<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Mr McCann warned: \u201cAlthough currently any money left in your pensions is normally free from Inheritance Tax, this is set to change from April 2027, with unspent funds set to be included in the inheritance tax calculation, bringing them into line with the Inheritance tax treatment of ISAs.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">\u201cIf you die before 75, in most cases, the benefits from pensions can be paid free of Income Tax, although there are limits if paid as a lump sum.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">&#8220;If you die after 75 your beneficiaries will be taxed on the money paid out to them after any inheritance due has been paid.\u2019\u2019<\/p>\n","protected":false},"excerpt":{"rendered":"Four million people aged 55 to 64 have ISAs worth an average of just over \u00a340,000, it has&hellip;\n","protected":false},"author":2,"featured_media":278512,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15,961],"class_list":{"0":"post-278511","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom","13":"tag-your-money"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114888121188213993","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/278511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=278511"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/278511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/278512"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=278511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=278511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=278511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}