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Editors' Blog

Posted by Cass - 24 September 2012

Sign Petition to Change ISA rules to help older savers

Change to ISA rules could be as beneficial as an increase in inerest rates for the older saver.

The past few years have been a savers' nightmare. With near-zero interest rates and rising costs of living, the value of people's savings has been slowly whittled away. Saga has been calling for the Government to listen to the problems faced by savers and offset some of the damage.

Current rules only allow half the annual 11,280 allowance to be put into cash ISAs. The other half must go into stocks and shares, or it is lost. The Mail on Sunday has started a petition calling on the Treasury to allow savers to put the full annual ISA allowance into cash if they wish so that they can benefit from the tax free interest without having to gamble on the markets.

A link to the petition can be found here:
http://epetitions.direct.gov.uk/petitions/38599

Saga is asking all those who would like to see this change come into effect to sign this petition and get as many family and friends as possible to do the same. If it gets 100,000 signatures, then Parliament may have to debate this issue and Saga wants to bring it to MPs attention so they make this change to benefit savers.

Dr Ros Altmann, Director-General of Saga, said:

"Savers approaching or already in retirement are finding the money they set aside to live on in later life is not delivering the income they need. It is vital for any economy to encourage people to save for their future, but if we punish those who have done so, it means younger people will decide it's not worth bothering.

"So, I'm delighted that the Mail on Sunday has started a petition calling on the Treasury to help - at least a tiny bit - by allowing ISA investors to choose whether to put all their annual ISA allowance in cash, or in stocks and shares, or both, with free transfers between each.

"It is hard to fathom what the rationale for these restrictions is. Stocks and shares ISAs can be invested wholly in foreign companies, so they may not even benefit UK firms. Saga has been calling for this common sense change to be made and really hope that the Government will listen at last."

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