Older people will be protected from bank account changes
Chancellor Rachel Reeves has confirmed the changes.(Image: PA)
Pensioners are to be spared from major changes to cash ISAs, Chancellor Rachel Reeves has confirmed.
Savings limits are to be put in place for millions of households under new rules.
The tax-free limit is being slashed from £20,000 to £12,000 in what will come as a blow to savers.
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But it has been confirmed that these changes will not apply to pensioners.
Over-65s will continue to benefit from the £20,000-a-year tax-free limit.
So older people will still be able to put £20,000 into these accounts.
Rule changes for everyone else will come into fore in April 2027, just over a year’s time.
It’s hoped slashing the ISA limit will encourage more households to invest in stocks and shares instead and fire up the economy.
The Chancellor has been careful to protect pensioners from these changes.
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Money Saving Expert explained: “The Chancellor has confirmed the cash ISA limit will be reduced to £12,000 a year from April 2027.
“The Government hopes the change – the first cut to the cash ISA allowance since 2017 – will encourage more people to invest in stocks and shares instead.”
They added: “Aged 65 or older? There will be no change. The £20,000 cash ISA contribution limit will continue to apply.
“Aged 64 or under? Your cash ISA limit will fall to £12,000.
“This will only apply to new contributions you make from April 2027. It won’t have any impact on savings you’ve already contributed to a cash ISA up until this point.”