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New cash ISA rules have been announced, with state pensioners being sent an important update.

Chancellor Rachel Reeves confirmed changes at the Budget.

The £20,000 tax-free limit will be slashed to £12,000 - however, this is only for people aged below 65.

READ MORE: Rachel Reeves 'tax raid' warning to anyone earning over £40,000

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That means pensioners will not be affected by the wider cash ISA changes.

They will continue to enjoy the £20,000 limit that currently exists.

The new rules were set out by Ms Reeves on Wednesday and come as a blow to savers.

Those aged below 65 will only be able to put a maximum of £12,000 a year into ISAs from April 2027.

Money Saving Expert explained: "An ISA is simply

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