Investors over 50 appear to be feeling confident about the stockmarket believing it offers the “only meaningful prospect for better returns”, according to research by Fidelity International.

Following the introduction of the new ISA allowance earlier this month, 54 per cent of over 50 ISA investors with savings of £10,000 or more say they have a positive outlook on the performance of the stockmarket.

In addition, 33 per cent of over 50 ISA investors claim to be feeling positive about the potential future returns from investing in stocks and shares, and are not discouraged by possible short term volatility in the market.

Meanwhile, one in five believe that with interest rates and the base rate remaining low, investing in stocks and shares represents the “only way” to receive potentially decent returns on their savings.

Commenting, Rob Fisher, head of UK personal investments at Fidelity International, said: “After a turbulent 18 months, our research indicates that the over 50s are now feeling far more positive towards the stock market. They recognise that with interest rates so low it really could be the best place to achieve good returns on their money over the medium term…plus that using their ISA allowance is vital to maximising their post tax returns.”

With new ISA limit allowing over 50s to shelter up to £10,200 from the taxman it seems many investors are looking to take full advantage of this increase.

“We have seen some of the highest customer call volumes handled by our UK phone teams so far this year, comparable to the normal end of tax year rush. In addition the volume of ISA top-up and new applications received has been nearly four times larger than the equivalent period last year,” Mr Fisher added.

From 6 April next year, all investors will be able to make full use of the new ISA allowance from participating providers.

© Fair Investment Company Ltd