Research from money app Plum has found that the number of ISA millionaires now exceeds the number of millionaires created by the National Lottery since its launch in 1994. While the lottery has produced more than 7,700 millionaires, HMRC data shows there are 5,070 confirmed UK ISA millionaires, with a further 2,770 investors sitting on pots of between £900,000 and £999,999.
Plum says that because HMRC's figures were recorded on 5 April 2023, subsequent stock market gains will have pushed most of these portfolios beyond the seven-figure mark. An additional 4,700 investors with pots between £800,000 and £899,999 are also likely to have crossed the million-pound threshold, with typical global trackers achieving compounded gains of more than 50 per cent since the data was updated. There are 59,970 ISA investors with portfolios worth between £500,000 and £999,999.
Rajan Lakhani, from Plum, said: “Few people could ever have imagined that when the ISA launched, it would one day be creating tens of thousands of millionaires and changing more lives than the National Lottery. But this is exactly the scenario that’s on the horizon according to HMRC’s own numbers, even allowing for the kind of stock market dips which are part and parcel of the investing cycle.”
Separate research from investment firm Lightyear suggests that Britain still has a long way to go in becoming a “nation of investors”. More people keep emergency cash in a coat pocket, spare wallet or drawer (21 per cent) than hold a Stocks & Shares ISA (17 per cent), while 4 per cent keep cash under their mattress. One in six adults say they have no savings or investments at all. Wander Rutgers, UK CEO of Lightyear, said: “People still aren’t putting money into the stock market. Many don’t understand what long-term returns could look like. Some don’t even know what the latest ISA changes are - let alone what they mean for their own money.”
ISAs were introduced in 1999, replacing Personal Equity Plans. From 6 April 2027, the cash ISA allowance will be reduced from £20,000 to £12,000, while the stocks & shares ISA limit remains at £20,000. Mr Lakhani added: “The government recently sparked controversy when it announced the cash ISA allowance would be cut from £20,000 to £12,000 from April 2027 in an attempt to incentivise greater investment in the stock market. It already seems the proposed reform is running into difficulty when it comes to implementation. However, while the cash ISA remains ideal for risk-free rainy-day savings, it’s unlikely that it will ever get you to millionaires’ row.”
