Saving for the future

mattastic

Hi,

I am coming up to 30 years old, and I have never invested in a pesion scheme, I have just put money aside in an ISA.

However, I am due to buy a house soon, which will use up all my savings that will go down as a deposit.

I was then thinking of just putting money aside into my ISA again, instead of getting a pension.

Can anyone advise as to what is best?

Thankyou.

EdInvestor

Unless you have access to a company pension with an employer contribution and /or are a higher rate taxpayer, the ISA route is best, as you will lose the allowance if you don't use it every year, whereas you can catch up with pension tax perks much closer to retirement.

You can invest up to 7k a year in a stocks and shares ISAs, they are not just for cash savings, and this is the way you should go if looking for a long term retirement income.

dunstonh

Ed, dont forget working/childrens tax credits favouring pensions over ISA and IHT liablity on ISAs but not on pensions. Latter being quite important as it is listed as a potential loophole to be closed for new contributions into a pension after a given date.