Over 50s are expected to invest more than £2.8billion in stocks and shares ISAs before April 5 as a result of the new ISA allowance, Legal & General has claimed.

The stocks and shares ISA provider is predicting that around one million over 50s will top-up their ISAs when the new limit is launched on October 6.

Legal & General’s research has revealed 21 per cent of over 50s have already taken out a stocks and shares, while 23 per cent of this group have said they will take advantage of the new ISA allowance before the end of the tax year.

Claire Evans, Legal & General Unit Trusts’ marketing director, is pleased with the research: “The benefit of our targeted research is that this is the first time this opportunity has been quantified. Legal & General has shown how much additional investment we can realistically expect the over 50s age group to make,” she said.

Meanwhile, a further 21 per cent of over 50s claim they intend to top-up their stocks and shares ISA, but are considering waiting to see if the economy shows signs of recovery first.

Commenting on this figure, Ms Evans added: “There are many more over 50s out there, we would estimate around 870,000 investors, who might also invest up to the new limit given the right market conditions.”

From October 6, anyone aged over 50 can top-up their ISA by £3,000 in a stocks and shares ISA and by £1,500 in a cash ISA, taking the new limits to £10,200 and £5,100 respectively.

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