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Oct 2020

ISAs for the Over 50s

ISAs for the Over 50s

Investing is a good idea at any age. But what are the best investments for those looking to invest in their fifties? You’ll likely be saving for your retirement – or looking to. You have a lot of options – and we’ve broken them down for you here. 

When looking at putting your money into an ISA in your fifties, there are different considerations you need to think about when spreading your money into different ISA types.

Your £20,000 yearly ISA allowance can be spread over different ISA types which can garner different benefits.

We’ve broken down some key ideas you should be thinking about when putting your pennies to work.

Cash ISA

Cash ISAs are known for having fairly poor return rates – so many people when looking to put their money to work may avoid these. However, they’re not to be sniffed at – they can, in the right context, be helpful.

Your fifties are an age where you enter a higher risk factor for certain illnesses, so it’s useful to have some money squirreled away in case the worst happens. This is because with Cash ISAs you can generally have easier access to your money such as with an Instant Access Cash ISA.

So in the case of a rainy day, it can be useful to know you can get to your money when you need it. 

Read more about Cash ISAs here. 

Investment ISAs

Investment ISAs offer higher rates of return than Cash ISAs, and there is a huge variety of different kinds of ISA accounts you can have.

Read more about Investment ISAs here

Peer to Peer ISA

If your years before your fifties have involved a lot of investing, then you might want to consider a Peer to Peer ISA.

This is a great way to diversify your investment portfolio, whilst also enjoying the potential for very high returns. 

These tend to be more risky as a form of investment, but if you’ve got the years of experience and a good, balanced investment portfolio behind you then these can be a great way to innovate your investments.

Read more about Peer to Peer ISAs here. 

Lifetime ISA

Lifetime ISAs are a specific ISA type which is aimed at long-term savings, and offer a very attractive return rate. The government will add a 25% bonus to the money you put into this account. The limit you can put into a LISA each year is £4000, so the most money you can make it £1000 per year.

It’s designed to be long-term saving which helps you pay for your first home (a goal likely long since past) and also for retirement. You can cash in the ISA at the age of 55.

Even if you’re over 55 you can still open a new LISA, and you’ll still be eligible for the 25% bonus you just need to ensure that you hold the account for at least a year. 

Read more about Lifetime ISAs here.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ Funds
  • Invest From: £50pm

Why we like it: Invest from as little as £50 a month or with a £1,000 lump sum. Investment choice from over 100 fund providers, giving you access to 2,000+ funds. One low-cost service fee of 0.35%*. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

* depending on how much you have invested

Special offer:

Invest and get £25 cashback » 

Build your savings with an ISA and receive £25. Exclusions, T&Cs apply.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Peer to Peer Lending ISAs

Peer to Peer Growth IFISA

from Lending Crowd

ISA Option
Allows ISA Transfers
Interest Rate 4.90% target return
  • Term: No Fixed Term
  • Invest From: £1000

Why we like it: Innovative Finance ISAs (IFISA) are the new way to invest tax-free. Just like Cash and Stocks & Shares ISAs, you can invest up to £20,000 each tax year, and you don’t need to pay any personal taxes on your earnings. Lending Crowd will automatically diversify your funds across at least 20 loans through their Loan Market, with no more than 5% of your funds invested in any one loan. All repayments will be automatically reinvested.

Important: Peer to peer lending is not covered by the FSCS. Returns are not guaranteed and your actual returns may vary. Capital is at risk

  • No income tax or capital gains tax to pay on your profits
  • No fixed term, hold for as long as you wish
  • Also accepts ISA transfers from previous year's ISA's
  • Investments are automatically diversified across multiple business loans
  • The target rate is variable, net of ongoing management fees, estimated bad debt and before the 1% withdrawal fee
  • Capital is at risk
  • Must be aged 18 or older
  • Peer to peer lending is not covered by the FSCS

Calculate your interest with this plan

Your savings:
You could gain:
£0.00 (per tax year)
Lifetime ISAs

Lifetime ISA

from Nutmeg

  • Protection Scheme: FSCS
  • Fund Choice: Fully Managed or Fixed Portfolios
  • Invest From: Min. Pay in from £100 to £4,000 to start your Lifetime ISA.

Why we like it: Simple annual portfolio management fee from 0.45% to 0.75%, incl VAT. There are also some underlying fund costs and market spread charges. Easy, online set up in minutes. Start with as little as £100 up to £4,000. Plus, live chat, helpful customer support and really useful investor tools and guides. Nutmeg are regulated by the Financial Conduct Authority and are covered by the Financial Services Compensation Scheme. Capital at risk.

  • Nutmeg Lifetime ISA: Invest in high-quality, low-cost exchange traded funds
  • Contribute up to £4,000 per year until you’re 50
  • Get a 25% government bonus: For every £4 you invest you receive a £1 bonus
  • Use your savings to buy your first home up to a value of £450,000
  • You can contribute to both a stocks and shares Lifetime ISA and a ‘regular’ stocks and shares ISA in the same tax year
  • Must be UK resident aged 18-39
  • If you need to access your money for any other reason, you’ll pay a 25% penalty
Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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