‘Become an ISA millionaire in 24 years’, the press release breathlessly announced. A millionaire? In 24 years? Yes please.
In 24 years I’ll be 66 and thinking of retiring. What could be better than a cool million to fund my latter years? So I read on.
All I, and other savers, have to do is stash away the maximum ISA allowance each year, according to the fund manager Fidelity International. That’s £15,240 for the 2016/17 tax year which kicks off on Wednesday, and £20,000 plus a year from 2017 onwards.
George Osborne announced the new bigger ISA allowance in the Budget last month. It’s normal procedure for the limit to rise with inflation each year so Fidelity has assumed the limit will increase by 2 per cent each year. It’s also assumed savers invest the money in a fund with annual 5 per cent growth.
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