ISA and Junior ISA limits are increased each year in line with the September CPI figure. The 2013/14 ISA limit of £11,280 will be increased by 2.2% with the same increase applied to the current Junior ISA limit of £3,600.
AJ Bell has called for the Government to increase the basic amount that can be contributed to a pension each tax year using the same measure.
AJ Bell Chief Executive Andy Bell says “The Government launched Junior ISAs because it is keen to encourage saving for children. It makes sense to keep the saving limits as simple as possible and linking the amount that can be paid into pensions and ISAs for children would help. It certainly doesn’t make sense that, from next tax year, it will be possible to save more into an ISA than a pension for children.”
Bell continued “The basic amount was first set at £3,600 in 2001 so a review has been overdue for some time. Indexing the pension limit would keep the rules simple and remove any ongoing requirement to review whether the limit is at too low a level.”