The Investment Management Association (IMA) is calling for annual increases in the ISA limit at least in line with inflation.
In its pre-Budget submission to the Chancellor of the Exchequer, the IMA also advocates the abolition of the fund-specific Stamp Duty Reserve Tax (SDRT) regime, and "fair, non-discriminatory treatment of offshore investments".
IMA chief executive Richard Saunders says: "It is important a clear message is delivered about the benefits of long term saving.
"With this in mind we are calling for the Government to help savers and pensioners by increasing the ISA limit annually at least in line with inflation and to abolish the requirement for people to turn their pension savings into an annuity by the age of 75.
"Stamp duty on equities represents a real drain on the value of people's investments and savings as well as impacting the cost of equity for companies on trading activity. We are calling for the abolition of Stamp Duty on equities."
Reform is also needed in the Government's approach to explaining the benefits of long-term saving to the public, says the IMA.
It also supports a more flexible retirement income regime for the longer term.
The IMA's pre-Budget representations can be viewed here.
Partner Insight: Continuing the Architas education series for clients.
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews