Martin Lewis has offered advice on managing savings amid economic uncertainty stemming from the Iran conflict. The conflict has driven up oil prices and raised concerns about long-term effects on food production and global growth.
On his BBC podcast, Lewis addressed whether now is a good time to open a stocks and shares ISA, given market volatility. He noted that falling share prices can present investment opportunities, but also carry risks if prices drop further.
Lewis recommended a pound-cost averaging strategy to reduce risk. For example, if you have £10,000 to invest, you could arrange for your provider to buy £1,000 worth of a tracker fund each month over ten months. This 'drip feeding' helps smooth out short-term volatility.
He emphasised that while no one can predict the perfect time to invest, over the long term a diversified portfolio is likely to outperform savings accounts. He advised not to be put off by volatility, but to consider spreading investments over time.
Lewis also highlighted upcoming changes to ISA allowances. From April 2027, the annual limit will drop from £20,000 to £12,000 for most savers, with the remaining £8,000 available only for investment-based accounts. Savers aged 65 and over will retain the full £20,000 allowance. ISAs remain tax-free.
