The number of Isa millionaires has surged by more than 50% in a year – to reach around 7,730, according to figures obtained by a money app.
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number → surge → app
Plum obtained the figure, which was rounded to the nearest 10, from HM Revenue and Customs (HMRC), following a freedom of information (FOI) request.
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which → obtain → request
HMRC said that, as at April 5 2024, the estimated number of individuals with total Isa holdings of £1 million or more was 7,730.
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number → say → more
The figure marks a 52% jump – or 2,660 new members of the Isa millionaires club – compared with 5,070 Isa millionaires that HMRC previously said were recorded by April 2023.
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HMRC → mark → April
According to HMRC’s latest response to Plum, the average Isa millionaire was sitting on a pot worth around £1,348,000 in April 2024.
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millionaire → accord → April
The mean average market value of the top 25 Isa millionaire holdings was £11,928,000, rounded to the nearest £1,000.
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value → round → 1,000
The majority of Isa millionaires, at around 7,300, were sitting on amounts worth £1,000,000 to £1,999,999 in April 2024.
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majority → sit → April
Meanwhile around 60 had pots worth £4,000,000-plus.
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60 → have → pots
HMRC also cautioned that figures should be used as a “guide” – as individual level Isa data is provided to it annually by Isa managers, however each year a proportion will enter records incorrectly, or fail to submit.
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proportion → caution → records
Isas enable savers to turbo-boost their funds as accounts that are ringfenced from tax.
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that → enable → tax
Will Bryant, director of wealth strategy at Plum, said: “A jump of more than 50% in a single year is really telling.”
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jump → say → year
He said the Isa millionaires are not people who “suddenly saved” their way to £1 million.
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who → say → million
Highlightng the benefits of compound interest boosting pots over time, he added: “It’s the result of years of patient investing, where the growth on your growth starts doing the heavy lifting.
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growth → Highlightng → lifting
That’s the bit people underestimate.
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people → ’ → ?
“These figures underline the value of investing and the importance of taking a long-term approach.
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figures → underline → approach
“Despite the geopolitical volatility of recent years, global markets powered by the US stock market have continued to climb.”
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markets → power → market
In April 2027, the annual cash Isa limit will be slashed from £20,000 to £12,000 for savers aged under 65, although the overall annual Isa allowance will remain at £20,000.
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allowance → slash → 20,000
The cash Isa allowance for people aged 65 and over will remain at £20,000.
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allowance → remain → 20,000
Mr Bryant said the changes “may lead people to use more of their stocks and shares Isa to make full use of their tax-free allowance,” but he added: “Many people simply won’t know what’s changing.”
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what → say → allowance
Figures released by HMRC in September showed around £135.7 billion was subscribed to adult Isas in the tax year 2024-25 – a £32.7 billion annual increase.
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billion → release → year
The £32.7 billion increase was driven by a rise in cash Isa subscriptions, which grew by 37.5% or £26.1 billion.
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which → drive → %
Maike Currie, vice president of personal finance at PensionBee, said: “Isas are one of Britain’s great savings success stories.
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Isas → say → stories
“Their beauty lies in their simplicity: a straightforward, tax-efficient way for ordinary people to build wealth and take greater control of their financial futures.
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people → lie → futures
“And you don’t need to become an Isa millionaire to benefit.”
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you → need → ?
Ms Currie said cutting the cash Isa allowance and introducing additional restrictions “risks making a simple product unnecessarily complicated, potentially undermining confidence at precisely the time we need more people saving and investing”.
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people → say → time
The Aporia
