In 2023, more than 5,000 individuals had amassed ISA pots worth over £1 million, according to data obtained by money app Plum through a Freedom of Information request to HM Revenue and Customs (HMRC). This milestone highlights the growing number of savers benefiting from tax-free wealth accumulation through ISAs.
HMRC’s data revealed that by April 2023, approximately 5,070 ISA holders had pots exceeding £1 million. Additionally, in the 2022-23 tax year, 1,240 ISA investors had accounts valued between £950,000 and £999,999, while another 1,530 held pots worth £900,000 to £949,999. Nearly 4,700 ISA holders had balances ranging from £800,000 to £899,999, demonstrating how many are close to joining the millionaire ranks.
Plum notes that due to market growth and the lag in reporting, many of those near the threshold in 2023 have likely surpassed the seven-figure mark by now. Moreover, nearly 60,000 ISA accounts held between £500,000 and £999,999, suggesting a significant number of savers may reach millionaire status within the next decade, assuming sustained investment growth.
Rajan Lakhani of Plum commented, “Few would have predicted when ISAs launched that they’d create tens of thousands of millionaires.” This is a testament to the power of tax-efficient investing over time.
PensionBee’s Maike Currie emphasized the importance of consistent investing over luck in building wealth, stating, “Unlike the Lottery, which creates millionaires by chance, ISAs provide an accessible opportunity for ordinary earners to grow their wealth through disciplined investing.”
However, a key deadline is approaching. Currently, savers can contribute up to £20,000 annually to their ISA accounts, including cash and stocks & shares ISAs. From April 6, 2027, a new rule will limit the maximum annual contribution to cash ISAs to £12,000, although the total ISA allowance remains £20,000. This means savers must maximize their current allowances before April 5, 2026, to take full advantage of the existing tax benefits.
With time running out for current ISA rules, savers are encouraged to review their investments and contribute before the upcoming changes, ensuring they benefit from the proven potential of ISAs to build substantial, tax-free wealth over time.