- With the tax net tightening, putting cash to work via pensions and Isas is more prudent than ever
- We look at the current Isa landscape, and how the options suit investors of different stripes
More than 2,000 UK investors have achieved ‘Isa millionaire’ status – an impressive feat given the tax wrappers were established in 1999, or 1987 if we count the personal equity plans that were later rolled into Isas. But in the past year, a horrendous market sell-off has thinned the herd: Interactive Investor notes that the number of Isa millionaires among its customers came to 852 at the end of January 2023 – a notable drop from 983 a year before.
Unsettling as that might seem, a lurch downward in markets is one of several unpleasant incentives to make as much use of the £20,000 annual Isa allowance as possible. Market falls present good opportunities for bargain hunters with long time horizons, whether they’re seeking total returns or are drawn to juicy yields, and those on the Isa millionaire list will have plenty of experience of market crashes – be it the Covid-19 panic, the financial crisis or even the dotcom bust. Investing as much as possible can pay off richly.