You’re never too old to think about the future, and you’re never too young to get started either.
When it comes to investing, it can be difficult to know when to take the plunge, or how much we’re meant to have done by now.
So, having an idea of when people tend to hit key milestones can help us understand whether we’re on track or whether we need to get our skates on.
Plus, we can hear direct from an HL client who’s used HL ISAs to help reach her goals.
This article isn’t personal advice. If you’re not sure if something’s right for you, ask for financial advice. ISA and tax benefits depend on individual circumstances and rules can change.
Investing for at least five years increases your chances of positive returns compared to cash savings. But investments rise and fall in value, so you could get back less than you put in.
Before the age of 1 – first steps with Junior ISA
More than a quarter of people opening a Junior ISA for their child in 2024 did so before their child turned one.
If they have a regular payment set up to go into it, this is commonly when they’ll do that too.
It can feel a step too far during those first expensive months of your child’s life, but you don’t need to do it alone.
Just opening a Junior ISA and letting loved ones know about it will often be enough to start a conversation with those who do have money available and want to help.
This is one area where grandparents can make an enormous difference. Your child can then access the money you and your family have saved for them when they turn 18.
Age 25 – a first Stocks and Shares ISA
The most common age to open an HL Stocks and Shares ISA (excluding those that rolled over from Junior ISAs) is 25.
This shows a real dedication to investing for the long term among those who tend to be at the start of their earning potential.
Starting early can transform the impact of investing, thanks to the immense power of compounding over time.
The fact they’re most likely to start regular investing at the age of 30, and that 34-year-olds were most likely to have paid into their HL Stocks and Shares ISA in 2024, shows how opportunities can open up as our incomes rise.
Age 26 – use a Lifetime ISA to buy your first house
The most common age to use an HL Lifetime ISA (LISA) to buy a house was 26.
This is quite an achievement when you consider the average age to buy a first home in England is 34.
It’s milestone that can feel incredibly difficult to reach, especially at a time when house prices continue to climb faster than you can put money away.
The LISA is a great way to supercharge your deposit. You can open one between the age of 18 and 39 and put in £4,000 each tax year as part of your overall ISA allowance, and get a 25% government bonus (up to £1,000 each year).
It can also make a huge difference to those buying for the first time later in life, who need all the help they can get. You just need to open it before the age of 40, but you can add money up until 50. HL clients have used it to buy a first home in their mid-to-late 40s.
Just remember, unless you’re withdrawing the money to buy an eligible first home or after 60, you’ll pay a 25% withdrawal charge, meaning you could get back less than you put in.
Age 39 – Lifetime ISA for retirement
The most common age for someone to open an HL Lifetime ISA is 39. This shows how people are cleverly taking advantage while they can.
There will be some people for whom this forms the bedrock of their retirement income and others who see it as a useful addition alongside their pension – offering a 25% bonus on the way in and tax-free income in retirement from the age of 60.
Whichever bracket you fall into, if you haven’t opened a LISA by the age of 39, it pays to do so, and keep your options open.
Age 61 – maxing out an ISA
Later in life, at the age of 61, we’re most likely to max out our ISA allowances.
In some cases, this is people making the most of a higher income while it lasts.
Others will be investing an inheritance, and others will have spent their lives building their assets, and will be taking the opportunity to protect their investments from the taxman.
Age 72 – make your first ISA million
The average age of an ISA millionaire is 72.
It’s the ultimate get rich slow success story, as investors build their portfolios slowly and carefully, so they have plenty of money to keep them secure in retirement.
Age 100 – it’s never too late
HL has clients opening new ISAs and setting up regular payments into them past the age of 100. It also has ISA millionaires who are aged 100 or over.
If you have surplus income, or assets outside an ISA, it’s never too late to shelter them from tax.
Some people will assume they have a shorter time horizon when they get to this age, so they feel they can’t invest. However, unless you expect to spend this money soon, you might well be effectively investing on behalf of your family, who could have years before they need the money. It’s worth remembering, though, that money held in an ISA is still subject to inheritance tax.
Vicky's story – how HL ISAs have helped me to save and invest
ISAs are a great way to save and invest at every stage of life.
You can pay in up to £20,000 before the tax year ends on 5 April. Anything you save or invest is then free from UK income and capital gains tax.
With HL, you can mix and match your approach by adding money to more than one type of ISA.
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