RETIRING with more than £1million in savings may sound like a pipe dream, but with a little discipline and forward planning it's more achievable than you might think. The number of millionaire ISA savers jumped to a record high of 4,850, according to latest annual figures.
![[Ascending stacks of British one-pound coins.]](https://www.thesun.co.uk/wp-content/uploads/2024/12/ascending-stacks-money-new-shiny-956972240_299500.jpg?strip=all&w=960)
The average millionaire has a tax-free pot of £1,351,000, HMRC figures showed in a freedom of information request made by savings app Plum. If you want to follow in their steps and amass a tidy lump sum for retirement, the trick is to start saving regularly as early as possible.
Even smaller amounts tucked away each month will build up over time into a big pot. When you are saving money over long periods of time, for example 10, 20 years or more, it usually makes sense to invest the cash. This way your returns are typically higher than if you'd saved in cash alone.
Investments can go down as well as up, but over longer period of investments, losses have more time to even out and make returns. Another perk of investments is that they often pay dividends every three to six months. These are cash payments to investors, which are a reward for investing in companies or funds.
If you keep these dividends in your savings pot, you will build up a returns much faster. Individual savings accounts (ISAs) offer tax-free savings on up to £20,000 a year. You can save money in a cash ISA or keep investments in a stocks and shares ISA.
