Using ISAs to fund your retirement

Could ISAs overtake pensions as the UK’s retirement savings vehicle of choice? That’s the question posed by the Financial Times over the weekend. 

When they were launched back in 1999, few expected them to become a serious part of retirement portfolios, but times have changed over the last 20 years. 

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However, according to the article, as concerns over pensions and tax grows, ISAs become ever more popular. The 2017-18 tax year saw the £20,000 ISA allowance used in full by 61% of adult ISA investors earning more than £150,000, according to data from HM Revenue & Customs. 

That same group will have seen their pensions savings options whittled down by the tapered annual allowance, potentially restricting pensions savings to as little as £10,000 per year.