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New ISAs could help you become a millionaire

01 February 2022
Reading Time: 5 mins

Yes, it sounds like a pipe dream… but according to the experts, savvy investment in your ISA really could see you become an ISA millionaire by the time you hit retirement age. It might not feel like it at the moment, with the threat of negative interest rates looming – but we’re looking at the long-term goals here.

How much you need to save

Being an ISA millionaire takes time

The limit on how much you can put into an ISA per year is currently £20,000. If you’re able to put a certain amount of money into your ISA every year, your money could grow fast and reach the big £1 million in just 25 years time. So even if you’re 40 now, you could put cash in each year and have a nice, rich retirement.

Fidelity Personal Investment worked out the amount of money that you should put in to reach this goal, depending on your age:

  • 25-29, £2500 per year
  • 30-39, £5000 per year
  • 40-49, £10,000 per year
  • 50-64, £20,000 per year

The amount your money will grow is based on an assumed annual growth rate of 5%, which Fidelity admits is “conservative”. So really, the growth we’re looking at to reach that £1 million is actually the worst case scenario. Alright, alright – right now, with 0.01% interest rates everywhere, it’s not going to grow your cash quickly. But – that’s if you put your money in a cash ISA. Opt for a stocks and shares, Lifetime, or Innovative Finance ISA, and your cash COULD still grow at those rates.

Good news? We think so! It looks like it’s time to get saving…

The new ISA Rules

Read on for the current ISA rules, for the 2020/21 tax year…

  • There are four different types of ISA: cash, stocks and shares, innovative finance and Lifetime ISAs (aka LISAs). You can read more about innovative finance ISAs later in this article
  • According to, you can put money into one of each kind of ISA each tax year
  • You must be over the age of 16 to open a cash ISA, over 18 to open an innovative finance ISA, and over 18 but under 40 to open a Lifetime ISA
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