How To Pick The Right ISA: It’s Never Too Early or Too Late

At Cleveden Park Wealth, we often say that when it comes to financial planning, it’s never too late to start—and never too early either. Whether you're planning for a child’s future, saving for your first home, or thinking about retirement, knowing when others typically hit key financial milestones can help you understand if you’re on track—or if it’s time to take action.

Here’s a guide to the common investing stages through life, and how tax-efficient vehicles like ISAs can play a powerful role in your journey.

Before Age 1 – The First Steps with a Junior ISA

More than a quarter of Junior ISAs are opened before a child turns one. Parents—and often grandparents—recognise the power of getting started early.

Setting up a Junior Stocks & Shares ISA can give your child a valuable head start. While the early months of a child’s life come with many financial demands, opening the account—even with a small contribution—can open the door for family members to contribute too.

When the child turns 18, they’ll gain access to the funds, which could support a house deposit, education, or a financial cushion to begin adulthood with confidence.

Age 25 – A First Stocks & Shares ISA

The most common age to open a Stocks & Shares ISA is 25. This shows a strong commitment to long-term wealth building early in a person’s working life.

Starting young unlocks the power of compound growth—where gains on investments can generate even more gains over time. While the value of investments can go down as well as up, investing over the long term (five years or more) has historically outperformed cash savings.

Age 26 – Buying Your First Home with a Lifetime ISA

At 26, many people use a Lifetime ISA (LISA) to purchase their first home—years ahead of the national average homebuyer age of 34.

With property prices rising, the LISA is a game changer. You can contribute up to £4,000 annually and receive a 25% government bonus (up to £1,000 per year). All contributions count toward your overall ISA allowance.

You must open a LISA before you turn 40, but can continue contributing until age 50. Even if you're buying later in life, the bonus support makes a big difference.

Note: Withdrawals not used for a first home or retirement after age 60 are subject to a 25% charge.

Age 39 – Your Last Chance to Open a Lifetime ISA

Age 39 is the final year you can open a LISA. Many use it to complement their pension savings, giving them another tax-efficient pot with a 25% bonus—and tax-free withdrawals after 60.

Whether it’s your primary retirement tool or a strategic addition, this can be a powerful way to boost long-term retirement income.

Age 61 – Making the Most of Your Allowance

At 61, people are most likely to use their full ISA allowance—currently £20,000 per year.

This often reflects a peak in income, an inheritance, or a culmination of years of financial discipline. It’s a key time to move cash or investments into ISAs to shield growth and income from future tax.

Age 72 – Becoming an ISA Millionaire

The average age of an ISA millionaire is 72—a testament to the power of long-term investing and compound growth. These investors have built wealth steadily and sensibly, ensuring they have what they need for retirement and beyond.

Remember: while ISAs are free from income and capital gains tax, the value of the account is still included in your estate for inheritance tax purposes.

Ready to Take the Next Step?

No matter where you are in your investing journey, at Cleveden Park Wealth we can help you plan ahead, build wisely, and make the most of your tax allowances—now and in the years to come.

Get in touch today to speak with one of our experienced financial advisers and start planning your future with confidence.