Isas have been recommended for older people looking to save for retirement.
Bestinvest senior investment adviser Adrian Lowcock stated while the savings accounts may not be quite as beneficial to this age bracket as they are to those in their 20s and 30s, they are still well worth considering.
“If you wrap up £3,500 it will go up to £4,100 in a cash Isa each year. The effect of that â€¦ each year will be massive,” he remarked.
Mr Lowcock suggested it would possible for those in their 40s to build up a sizable nest egg for retirement if they set one up now and said the government could do more to promote Isas and the tax benefits they offer.
Earlier this month, Halifax published a report that indicated many pensioners are unaware of their entitlements with regards to tax, with 67 per cent of over-65s not registered to receive gross interest.
By Chris Trimble