Number of Isa millionaires will soon surpass those who have won seven-figure jackpots on the lottery

The number of Isa millionaires in Britain will soon overtake those who have scooped seven-figure jackpots on the lottery, new data suggests.   

The number of Isa millionaires, those who have an Isa worth £1million or more, has soared in the past 12 months.

The most recent data shows there are were 5,070 Isa millionaires in April 2023, up from 4,850 in 2022, according to a previous Freedom of Information request from money app Plum to HMRC. 

But a fresh FOI shows there were an additional 2,270 investors sitting within touching distance of Isa millionaire status, with pots of between £900,000 and £999,999

This, combined with stock market gains over the three years means there are likely far more Isa millionaires than 5,070.

If the 2,270 investors with pots of up to within £100,000 touching distance of £1million had grown the value of their pots to £1million over the three years since April 2023, the number of Isa millionaires could now be around the 7,340 mark. 

It means the number of Isa millionaires could soon – or already has – overtaken the number of National Lottery £1million winners in the country. 

Since its launch in 1994, the National Lottery has created more than 7,700 millionaires across all games and is currently creating around 400 a year. 

Rajan Lakhani of Plum says: ‘The data suggests Isa millionaire numbers are soon to explode as tens of thousands more follow suit.’

But even that 7,340 number of millionaires could be wide of the mark, the FOI suggests.

There were 4,700 investors with pots between £800,000 to £899,999 who are very likely to have seen their tax-free fortunes grow to £1million, with typical Isa global trackers following benchmarks like the FTSE All World Index achieving compounded gains of 50 per cent since April 2023. 

There were 59,970 Isa investors with Isas worth between £500,000 and £999,999. 

It is likely that most of these can expect to join ISa millionaire row within the next 10 years, assuming they remained invested and achieved 7 per cent annualised compounded growth. 

HMRC data shows 29,510 investors had pots between £500,000 and £599,999, while 15,010 had £600,000-£699,999, and 7,980 were sitting on pots of £700,000-£799,999. 

Plum’s analysis of the HMRC data suggests there could be 40,000 Isa millionaires in 10 years, a remarkable increase on the 5,070 officially recorded currently.

Investment platform AJ Bell revealed the number of millionaires who invest it has jumped 74 per cent in a year, while Interactive Investor saw a 79 per cent jump in Isa millionaires on its platform, rising from 1,607 one year ago to 2,869. 

Isa millionaires have one thing in common: they all built their fortunes through stocks and shares Isas – 94 per cent of Isa millionaires are fully invested in stocks and shares while the remaining 6 per cent made their £1million fortune through a mix of stocks and shares and cash Isas. 

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