New ISA limit offers a good retirement option

People looking for the best savings rates to ensure they have a nest egg when it comes to retirement may want to invest their money in ISAs.

The ISA rate will increase to £10,680 in April 2011 making it a very attractive prospect for savers looking to build for their future.

A recent survey by Fair Investment Company found that 14 per cent of respondents have no pension and a third of those intend to fund their retirement through their ISA investments.

George Ladds, head of investment and pension research at Fair Investment Company, said: "Ordinary savers tend to want simple products that they can access any time and pensions tend to confuse people."

ISAs are particularly attractive to younger investors as they provide a tax free vehicle for their money and also allow quick and easy access to their money.

He added that the debate over which is better, pensions or ISAs is likely to rage on as he believes that both have benefits.

Which? recently revealed that savers in the UK are missing out on around £12 billion a year because banks are keeping them in the dark over the best interest rates.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-10-27 12:10:06 © Moneyextra.com