Pension or ISA?

karen43_2

If you are a consultant, therefore have no contributions from an employer towards a pension scheme, is it best to save using ISAs or a personal/private pension? Thanks.

bristol_pilot

Higher-rate or basic-rate taxpayer? Age? Retirement age? Income?

Andy_L

There's a big sticky thread on the subject at the top of this board. The summary is "a bit of both" with the exact mix depending on the answers to the questions Bristol_Pilot asked

karen43_2

I am basic-rate taxpayer,I am 43 years old (I have moved around jobs and lived abroad, so I don't have one large pension, but 3 small ones). This will be my first time as a 'consultant'. Salary is approximately £15.5K. Retirement age....who knows. Lets say 65.

Oh and also, there's a possibility that this job will end sometime next year, but it may not

bristol_pilot

karen43 wrote: »

I am basic-rate taxpayer,I am 43 years old (I have moved around jobs and lived abroad, so I don't have one large pension, but 3 small ones). This will be my first time as a 'consultant'. Salary is approximately £15.5K. Retirement age....who knows. Lets say 65.

The absence of employer contribution and higher-rate tax relief combined with low salary suggests the ISA route. Do you know what income in retirement (at todays rates) your 3 small pensions will give you?

karen43_2

Will get back to you on that one once I've looked at the recent statements. Thanks for your advice/time so far.