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Original poster

To wonder what the point of trying to save is?

131 replies

CircusofPuffins · 01/07/2025 10:15

Lots of reports today that Rachel Reeves is, as been rumoured for quite a while, due to announce plans to limit the amount that we can save in cash ISAs

https://www.ft.com/content/01371783-0399-412b-82be-c87f3a60ff8c

As someone who has the majority of my life savings in ISAs, I find this really objectionable. Apparently, this has lobbied for by people in the city, wanting more of us to invest in stocks and shares ISAs instead. Despite them ignoring the simple fact that most people won't understand stocks and shares ISAs, or have the necessary time/effort to get clued up on it.

I can't help but feel quite despondent about this, and wonder what really is the point of even bothering to save these days? The last few years I've been trying to be as careful as possible with money, limiting spending on luxuries and putting a decent chunk of my paycheque aside each month to hopefully, one day, be able to buy a house.

But now it seems like labour are targeting savers? And what really is the point of this massive house-building programme they supposedly want to accomplish if the vast majority of us will probably never be able to save enough to buy one in the first place?

What a depressing country this is increasingly becoming to live in...

Rachel Reeves set to cut cash Isa allowance

Chancellor is expected to outline plans to limit the amount of money that can be saved into tax-free cash accounts each year

https://www.ft.com/content/01371783-0399-412b-82be-c87f3a60ff8c

OP posts:
TheAutumnCrow · 01/07/2025 10:29

Also, saving for something, whether it's a house deposit when younger or a stair-lift in later life can mean the difference between successfully claiming Universal Credit (especially helpful re rent) and Pension Credit.

It's all a bit fucked up, really, especially for the huge swathe of people 'In The Middle'.

ThereIsThunderInOurHearts · 01/07/2025 10:25

OldLondonDad · 01/07/2025 10:16

You can put cash into a stocks and shares ISA and let it sit there uninvested. In many cases, you'll be paid interest on that cash, and quite possibly more interest than in a cash ISA!

This is such a non-story it's unbelievable.

If you opened a stocks and shares ISA and put in £2000 you could then leave £1000 as cash and put £1000 in an index fund and see which one does better. None of us know the future, so there's no guarantee, but the odds are something like 90% in favour of the invested money growing more than the cash over 5 years or more.

Edited

This is such a non-story it's unbelievable

Completely disagree and if it's such a non-story, we therefore don't need explanations as it's all so simple...

Labour is for lobbyists, not ordinary people.

TheAutumnCrow · 01/07/2025 10:25

Chartofstarsg00d · 01/07/2025 10:19

If you are under 40
Your house savings should be in a LISA, because the Government adds free money into these.

Do you have a LISA ?

Unfortunately the reality is a bit worrying in times of economic hardship:

Lifetime ISAs leave some with less money than they put in

Some people who pay into a Lifetime Individual Savings Account (LISA) may end up getting less money out than they put in, MPs have warned, as they call for the product to be reformed.

www.bbc.co.uk/news/articles/c93kgye03j9o

Chasingsquirrels · 01/07/2025 10:25

No one is taking those savings away from you!

ISAs are just a tool to manipulate what the government of the day wants the populace to do.
Often these tools outlive their purpose but remain in place.

Chartofstarsg00d · 01/07/2025 10:19

If you are under 40
Your house savings should be in a LISA, because the Government adds free money into these.

Do you have a LISA ?

OldLondonDad · 01/07/2025 10:16

You can put cash into a stocks and shares ISA and let it sit there uninvested. In many cases, you'll be paid interest on that cash, and quite possibly more interest than in a cash ISA!

This is such a non-story it's unbelievable.

If you opened a stocks and shares ISA and put in £2000 you could then leave £1000 as cash and put £1000 in an index fund and see which one does better. None of us know the future, so there's no guarantee, but the odds are something like 90% in favour of the invested money growing more than the cash over 5 years or more.