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Thread: Savings for retired parents

  1. #1

    Savings for retired parents

    Hello all.

    I'm sure this has probably been asked before, but I can't seem to find a straightforward answer on gov.uk or similar websites...

    I understand that a basic rate taxpayer can earn 1000 in interest from savings before tax is deducted by the bank or building society, but does the same rule also apply once you have retired and become a pensioner?

    My parents have money from the sale of their house, and I'd like to find out if it's worth them continuing investing in ISAs to minimise tax deductions, or whether they can just put all their funds in regular savings accounts as they won't get taxed anyway?

    Thanks in advance for any advice

  2. #2
    Pensioners dont have any special allowances for savings interest or other income.

    If the house sale has provided a serious amount of money (eg >50K), the parents need it for ongoing income and they aren't say >85 it may be sensible for them to consult an IFA with regards to some level of investments. This could provide a better return than bank/ISA interest

  3. #3
    Tax is no longer deducted by a bank or building society at all, no matter how much interest you earn.

  4. #4
    Hi. Sorry, I don't understand - would you be able to elaborate please? Do you mean that it gets charged via some other method, rather than by the bank/building society? Thanks.

  5. #5

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