ISAs projected to create more annual millionaires than the lottery by 2031
ISAs will create more millionaires each year than the lottery by 2031, research has revealed.
Financial comparison website InvestingReviews commissioned research by the Royal Statistical Society, chartering the likely rise of stocks and shares ISA millionaires based on HMRC data.
There are currently around 6,100 lottery millionaires while there are 1,365 ISA millionaires across Hargreaves Lansdown, AJ Bell and Interactive Investor, the three major platforms.
Currently, the lottery creates just over 300 millionaires each year across all games but in 10 years’ time the annual number of new ISA millionaires is forecasted to average 322.
It will take eight years from now for the current number of ISA millionaires across major platforms to double, hitting almost 3,000 by 2029. And by 2046 the total number of ISA millionaires created in the UK will eclipse the total number of lottery millionaires created.
By then, the number of ISA millionaires created will have increased more than tenfold to 14,789, rising by more than 1,000 each year on average and overtaking the 13,900 lottery millionaires generated by then.
More than 70 per cent of the UK adult population play the lottery, while there are 2.7 million stocks and shares ISA accounts.
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“These days everyone wants a rock star lifestyle and their very own place on millionaires’ row,” said Simon Jones, chief executive of InvestingReviews.
“Happily, that dream looks set to come true for the canny army of armchair investors who have been squirreling money away in their stocks and shares ISAs every year.
“In the race to join the rich list, ISA millionaires are fast turning the tables on lottery players. ISA millionaires numbers are going to explode in the years ahead.”
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“Our data shows the path to riches is likely to be far quicker if you put your money in a stocks and shares ISA every month, instead of handing it over to Camelot,” said Marie Oldfield, chartered statistician with the Royal Statistical Society.
“Over 30 years, out of 1,000 lottery players, 25 could become millionaires and 975 of them could be expected to collectively lose £585m.
“Whereas all 1,000 could expect to be ISA millionaires worth £1bn collectively had they shunned the lottery and chosen investing instead.”
The rise in ISA millionaires comes despite the Chancellor Rishi Sunak’s Budget announcing that the annual payment limit for adult ISAs will be frozen at £20,000 for at least another year.