For many UK investors, the idea of becoming an ISA millionaire may feel out of reach. Yet with consistent contributions and long-term planning, it is more achievable than ever.
According to HMRC, around 4,000 ISA millionaires already exist in the UK (most are aged between 60 and 72, although the youngest ISA millionaire is 35): in this guide we will give you insight on how to become the next ISA millionaire.
At a Glance
- To become an ISA millionaire try to maximise your ISA allowance (£20,000 in 2025/26 tax year).
- Focus on Stocks and Shares ISAs for growth potential.
- Reinvest dividends to harness compound returns.
- Consistency and patience are key.
How to become an ISA millionaire? | Make full use of ISA allowance consistently |
Which type of ISA account is recommended to achieve an ISA worth £1 million? | A stocks and shares ISA |
How can you achieve an ISA worth £1 million? | Through long-term investments |
What to abstain from to achieve a £1 million ISA? | Do not make withdrawals |
Invest Wisely: Let Your Money Propel You to ISA Millionaire Status
The first and most important tip is that you need to be putting your money to work. With the current inflation rate at 3.8% (updated July 2025), merely holding your money in cash may not be the best strategy for significant long-term growth because the presence of inflation can still lead to a gradual decrease in the real value of cash savings over time. Capital at risk.
For your ISA to reach £1 million you would need to invest the full £20,000 allowance for the 2025/26 tax year over roughly 26 years with an annual growth rate of 5% and if you were able to achieve returns of 7% the timeframe could fall to around 23 years, since no cash account offers interest rates anywhere near these levels it is important to consider your investment options.
Scenario |
Annual contribution |
Assumed growth rate |
Approx. years to £1m |
Key considerations |
Maximum allowance |
£20,000 |
5% |
~26 years |
Requires consistent full use of ISA allowance every tax year. Returns not guaranteed. |
Higher growth scenario |
£20,000 |
7% |
~23 years |
Achievable only with sustained higher returns and acceptance of greater market volatility. |
Moderate contributions |
£10,000 |
5% |
~34 years |
More realistic for many households, but takes longer to reach the £1m milestone. |
Lower contributions |
£5,000 |
5% |
~44 years |
Still builds a substantial pot over time, though inflation risk becomes more relevant. |
A stocks and shares ISA is our recommendation as understanding the power of compound interest of a stocks and shares ISA and reinvesting dividends can accelerate your journey.
It is important to remember that all investments carry risk: the value of your investments may fall or rise, and you could receive back less than the amount originally invested.
If you’re aiming for significant enough returns, financial markets may be your best bet. Also, utilizing an ISA millionaire calculator can help you plan and track your progress.
Long-Term Vision: Building Your ISA Millionaire Portfolio
Becoming an ISA millionaire is a long-term goal. It typically takes decades of steady contributions and reinvested growth.
Avoid any kind of ‘get rich quick’ scheme or speculative trading. You can lose money with any investments, and backing the wrong horse on a speculative trading strategy can be disastrous. This extends to particularly volatile assets like cryptocurrencies or NFTs – people have made and lost a lot of money trading them, but we wouldn’t see them as part of any long-term strategy.
To safeguard your path to becoming an ISA millionaire, it’s crucial to avoid early withdrawals and short-term trading. These can significantly hinder the compound growth of a healthy portfolio. It’s important to take a long-term approach at all times and avoid being drawn into speculative trading.
How to Become an ISA Millionaire in 4 Steps
Step 1: Maximise Your Annual ISA Allowance
One of the most effective ways to build towards ISA millionaire status is to make the most of your annual ISA allowance. For the 2025/26 tax year, the allowance is £20,000. Consistently investing close to this maximum each year can, over time, accelerate your progress towards a seven-figure ISA.
In practice, not everyone will be able to commit the full £20,000 annually. However, maximising contributions within your means remains valuable. Even smaller, regular amounts benefit from tax efficiency and compound growth over time.
Step 2: Put Lump Sums to Work
Lump sums, such as an inheritance or work bonus, can also be put to good use by spreading contributions across multiple tax years. For example, rather than holding £300,000 in cash, using the ISA allowance each year allows the funds to grow tax-efficiently, while reinvested dividends enhance long-term returns.
It is also worth remembering that the ISA allowance operates on a “use it or lose it” basis. Unused allowance cannot be carried over, so planning contributions before the 5 April deadline is essential. Whether your contributions are large or small, consistency and discipline are more important than reaching a specific figure.
Step 3: Stay Consistent and Avoid Withdrawals
Becoming an ISA millionaire is a long-term ambition, best approached with patience and realistic expectations. Few people will be able to invest £20,000 every year. Contributions of £5,000, or even less, can still result in a substantial ISA over time, provided they are made regularly and invested wisely.
Avoiding withdrawals is also fundamental, as this interrupts the compounding process that underpins portfolio growth. We recently produced a video explaining how important it can be for the value of your long-term investments. Watch it here.
Step 4: Focus on Long-Term Wealth, Not Just the “Millionaire” Label
The real focus should not be on the “millionaire” label, but on building sustainable wealth for the future. Consistency, diversification, and reinvesting dividends are the key drivers of long-term success.
The journey towards an ISA millionaire portfolio is about financial wellbeing, not a single number. A disciplined strategy, aligned with your goals and risk tolerance, will leave you better positioned for retirement and other long-term needs.
You can speak to a consultant who can help you create a plan that fits your long-term goals and financial situation.
Financial Planning: The Backbone of Your ISA Millionaire Ambition
You won’t become an ISA millionaire without some careful financial planning. Without it, you might have to commit the cardinal sin of having to withdraw your returns to pay for unplanned events. No one is exempt from falling foul of unexpected events that need money to cover them. The more well-off you are financially, the higher these unforeseen costs can be.
The place to start is by creating a budget. This budget needs to include all of your regular expenses and expected income. Only by establishing a budget can you accurately determine the amount of disposable income remaining once all expenses have been accounted for.
Firstly, before you earmark any surplus for investing, you should create an emergency fund, even if you are relatively wealthy. Regard your emergency fund as a short-term investment. It’s there to be tapped into when necessary, and the most popular vehicle for this type of short-term saving is an easy or instant-access savings account. Once you tap into the fund, you should top it up again, or it will surely dwindle away. This, too, should be a feature of the budget plan you create.
Having a healthy emergency fund means that you can safely invest the rest of your income in, say, a stocks and shares ISA as a long-term investment. By keeping all returns inside the tax wrapper, compound interest can get to work and help you along the road to one day becoming an ISA millionaire or at least being very comfortably positioned when retirement finally comes around.
Key Takeaways
- Maximising your ISA allowance each year can accelerate progress towards £1 million, but even smaller contributions build over time.
- Stocks and Shares ISAs offer higher growth potential than cash, though returns are not guaranteed.
- Reinvesting dividends is essential to benefit fully from compound growth.
- The journey typically takes decades, and the timeframe depends on market performance as well as contribution levels.
- Diversification, consistency, and patience are fundamental
FAQ
Yes, it is possible. According to HMRC, there are 4,000 ISA millionaires currently in the UK. Most are aged between 60 and 72, although the youngest recorded ISA millionaire is just 35.
Maximise your ISA allowance each tax year, focus on a Stocks and Shares ISA for growth potential, and reinvest dividends to benefit from compounding. Diversification and discipline are essential.
With maximum annual contributions and 5–7% growth, reaching £1 million may take 23–26 years.
Not necessarily. Smaller but regular contributions can still grow into a significant ISA over time, especially if you start early and remain consistent.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.