UK to cut ISA allowance to £20K in 2027, limiting cash investments and affecting near-retirees.

Starting April 2027, the UK’s ISA rules will change, reducing the total annual allowance to £20,000 but restricting £12,000 to cash or stocks and shares ISAs, with the remaining £8,000 required for stocks and shares only. The shift aims to boost investment in the stock market, but experts warn it may disadvantage near-retirees who rely on cash ISAs for safety and liquidity, potentially disrupting retirement plans and increasing financial complexity. The change won’t affect those aged 65 and over.