Chancellor considers major cut to cash ISA limit affecting pensioners

Chancellor Rachel Reeves is considering a significant reduction in the annual limit for cash ISAs from £20,000 to £4,000. This change aims to encourage more investment in stocks and shares, following discussions with financial executives. The proposed limit would impact over 18 million cash ISA holders, particularly state pensioners who rely on these accounts for safe savings. Experts warn that many elderly savers may not be able to shift to riskier investment options. Savings providers are preparing to oppose the potential limit change. They argue that cash ISAs are crucial for retirees who need stable returns and have limited financial flexibility.