Isa’s ..

[the80sweregreat]

I have one that is over 12k , will the remainder in there be taxed after the budget? I have never invested in stocks and shares and no idea how it will affect me.
Will the bank have to advise me?
I am a bit of an ignorant about things like this to be honest.
Will the budget changes happen immediately?

Nothing magically happens at 65 but the expectation is then that you aren’t earning anymore but instead are having to live off your savings and thus need the money to be in cash savings formats.

also many S&S type ISAs and other investment style savings have specific terms and mature after X number of years. They are aware that at that stage of people people need to be less tied into long term commitment and be able to draw down on savings in order to live.

It will have been done like that because it is recognised that older, retired people have more need to be able to have access to secure, easily accessible savings than younger people. They have less time to ride out any bumps so it makes sense for them to hold a larger portion of their money in cash than it does for someone younger.

They will still be 2 seperate products as they are now though. The provider isnt going to move anything over 12k to S&S for you.
You can also just keep the cash isa you have and add £12k to it every year. You dont need to open new ones. If you get a better interest rate you can usually do a transfer from the old one to the new one. The transfer dosent count towards your annual limit

Do the government want more ordinary savers to invest in things other than cash ISAs etc?

Yes. What most people call a "stocks and shares" ISA is a much wider product - you don't have to invest it in the stock market and most providers will have a big selection of different investments to choose from, with different objectives, risk profiles etc. Some of the options will be pretty similar to cash in terms of risk.

The Lifetime ISA limit is already £4,000 per year (ie less than £12,000 per year) so is unaffected.

A huge number of people seem to be misunderstanding this change as there being a £12,000 total limit on Cash ISAs. This is not the case, it is an ANNUAL CONTRIBUTION maximum of £12,000 which hardly anyone is rich enough to use in full anyway.

I agree. It's remarkable the amount of people who seem to have cash Isa but not understand even the basics of how they work.

Nothing compared to the amount of people with pensions and no understanding of the basics.

No, it’s not retrospective. It starts from next year.

This is a move to stimulate the economy. Gov want to have less put into cash ISAs and encourage more investment in stocks. Over 65’s can still put £20k into cash ISAs though

True

Of current cash ISA savers, how many are going to bother with S&S ISA’s? Cash ISA savers are generally risk averse, so many will be dumping their money elsewhere (savings accounts, Premium Bonds). Cash ISA’s have always been much more popular than S&S ISA’s. Government need to cut spending instead of going after the easy targets.

I’m nearly 60, and I’m unlikely to save more than £12K pa anyway, so this won’t affect me. My existing ISA will stay as cash, because I don’t have the time to weather the markets.

If I was younger (or if I have a big win on the Premium Bonds) I would probably put some into S&S.

It’s only in the last few years that I’ve had substantial savings, and I had barely any at all the last time interest rates were high enough to cause concern to any but the very rich about tipping over the allowance.