ISA Planning
January 19, 2026

Your ISA Investment Strategy for 2026

Investing in the New Year

The 2025 Autumn Budget brought some important changes to ISAs that will affect how many of us save and invest—especially if you’re under 65. With the limit on Cash ISAs dropping, investing will likely play a bigger role in making the most of your tax-efficient savings going forward.

A Fresh Start for Your Finances in 2026 and Beyond

Starting 6 April 2027, if you’re under 65, the amount you can put into a Cash ISA each tax year will fall from £20,000 to £12,000.

But don’t worry—the overall ISA allowance remains £20,000. The change means that if you want to use your full allowance, you’ll need to invest at least £8,000 of it in a Stocks & Shares ISA or another investment-based ISA.

For those 65 and over, nothing changes—you can still put the full £20,000 into a Cash ISA.

Even though these changes aren’t here yet, January is a great time to plan ahead, so you’re not caught off guard later.

Why Now Is the Perfect Time to Think About Investing

The New Year is when many people rethink their priorities, set new financial goals, and imagine where they want to be in the future. With these ISA rule changes coming, it’s a smart moment to ask yourself: is your money really working hard enough for you?

For many savers, that means understanding the difference between saving and investing—and how you can use ISAs more effectively.

Cash Savings vs Investing: What’s the Difference?

Cash ISAs are great for:

  • Emergency funds
  • Short-term savings
  • Money you might need soon

They’re low risk and simple, but returns can be limited—especially after inflation is taken into account. With the Cash ISA allowance dropping to £12,000 for under-65s, relying only on cash might not help you make the most of your tax-free savings anymore.

Stocks & Shares ISAs let you invest your money rather than just hold it as cash. While investments can go up and down in value, they offer the chance for better returns over the long term.

Some key benefits include:

  • Tax-free growth and income
  • Potential to beat inflation over time
  • Flexibility to match your goals and comfort with risk

And don’t worry—you don’t need to be an expert investor. Many Stocks & Shares ISAs are designed to be simple and professionally managed.

New Year, New Strategy

As you set your financial goals for 2026, think about what investing can do for you.

  • Protect your money from inflation. Inflation slowly reduces how much your cash is worth. Investing has historically helped guard against this loss of value.
  • Make the most of your ISA allowance. If you’ve been using mainly Cash ISAs, the new limits mean it’s time to mix in investments to fully use your £20,000 annual allowance.
  • Time is on your side. The earlier you start investing, the longer your money has to grow through the power of compounding. January is a great time to begin.
  • Adapt your strategy as you go. You might keep some cash for short-term needs, while investing suits your longer-term goals. You can always adjust your approach as your life changes.
  • Consider a blended approach. Many people find a balance between cash savings and investments gives both security and growth potential.

What the ISA Changes Mean for Savers Under 65

For younger savers, the 2025 Budget signals a clear shift: investing is becoming a must-have part of your long-term financial plan, not just an optional extra.

Investing might feel new or daunting at first—but it doesn’t have to be complicated. With the right advice and a long-term view, it’s a powerful way to grow your wealth and make the most of your tax-free allowances.

And that’s where we come in.

Talk to Your Adviser This January

If you’re thinking about your finances for the year ahead, or you’re unsure how the ISA changes might affect you, Insight Financial Associates are here to help.

Our independent financial advisers offer clear, personalised guidance so you can make confident decisions about saving and investing. Why not get in touch today and book a review appointment?

Sources:

  • Fidelity: How to Ensure Your Savings Beat Inflation

https://www.fidelity.co.uk/markets-insights/markets/global/how-to-ensure-your-savings-beat-inflation-in-3-charts/

  • UK Government: Tax-Free Savings Newsletter, November 2025

https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025