Chancellor of the Exchequer George Osborne announced the Budget 2014on Wednesday (March 19th).
He described it as a Budget for Britain’s savers, announcing a series of measures intended to help people get the most value for the money they have earned and put away.
Most notably, the chancellor revealed a radical reform to pensions, removing the effective requirement to buy an annuity and offering greater flexibility when it comes to accessing a pension.
Furthermore, he announced that from July 1st 2014, ISAs will be reformed into a simpler product, giving people a tax-free saving limit of £15,000 a year.
This seems like good news for savers, but does this option now offer more benefits than investment?
Of course, a cut in the taxation of savings will benefit savers, with the interest available from an ISA set to be less affected by necessary payments to the government. Mr Osborne also said the 10p tax rate for savers will be abolished.
Those who put their money into shares ISAs will also benefit from the potential for increased tax-free earnings on savings. However, the stocks and shares market is still a volatile environment.
Investing in property might still prove to be the more worthwhile option. While ISAs and savings offer marginal returns from interest and market success, property offers more favourable monthly income.
As the market is currently on the up, property is becoming increasingly valuable in the UK. Therefore investing in bricks and mortar will not only offer benefits in terms of rent, the value of the building will also rise in the coming months.
With demand high for various types of property, from offices to residential homes and car parks to care homes, it provides a much safer investment opportunity than fluctuating stocks and shares. With the need for available property expected to rise, now should be the time investors take their opportunity.
Although the latest Budget announcement did provide some hope and support for savers, it is still not the most lucrative option if you want your money to go further.
Speak to an investment property expert to see how you can boost your income with an asset that is suited to your needs and budget.