Over 50s who do not know how much they can save in a cash ISA are missing out on an additional £4.7billion of tax efficient investments, Selftrade has said.

The share dealing provider has revealed that 15 per cent of over 50s in the UK – equivalent to 3.15million people – are unaware that the cash ISA limit was increased back in October last year and are failing to take advantage of the extra £1,500 that can be saved tax efficiently.

Meanwhile, it has also found that there is a certain amount of confusion surrounding the stocks and shares ISA allowance since it was also increased to £10,200, as 35 per cent of over 50s wrongly guessed what the new limit was.

Commenting, Mark Pearson, chief marketing officer at Selftrade said: “It is clear from the research that the new ISA subscription levels for over 50s are not widely understood.”

However, despite a significant number of over 50s revealing their lack of understanding towards their ISA entitlement, Selftrade has said that 46 per cent still want to take control of their money themselves.  

“With ISA season upon us, many will see this as an opportune time to take control of investment planning and make full use of their tax allowances, however, as our research proves, for many there is a knowledge gap around the increased limits which means people are missing out,” Mr Pearson added.

© Fair Investment Company Ltd