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ISAs v Pensions: The Official Retirement Debate

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Comments

  • EternallyGrateful
    EternallyGrateful Posts: 127 Forumite
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    EternallyGrateful wrote: »
    Last year I was told I was terminally ill with a liver transplant being my only hope.

    I should have said in my original post the two reasons for mentioning this:-
    Firstly, a crisis can befall any of us. This particular one means that the chances of me making any further contributions to my pension fund are virtually nil.
    Secondly, it took this crisis to make me sort out my finances 'properly'.
    Whilst I've always 'dealt' with my finances and made investments since my early 20's, taking a real serious look is something I may NEVER have got around to without my health problems. I know for sure that two of my investments would have virtually died with me at a loss to my wife and family of about £73k.
    That money has now been reinvested.

    You never know what's around the corner!
  • andylcq
    andylcq Posts: 4 Newbie
    both have tax free growth
  • atush
    atush Posts: 18,731 Forumite
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    andylcq wrote: »
    both have tax free growth

    So succinct, yet so true ;)

    In any case, I think everyone would be wise to have some of each. And anyone who diesn't have either is unwise.

    I think we should have a new thread. Instead of Pension VS ISAs, it should be Pension + ISAs.
    .
  • EternallyGrateful
    EternallyGrateful Posts: 127 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    atush wrote: »
    So succinct, yet so true ;)

    In any case, I think everyone would be wise to have some of each. And anyone who diesn't have either is unwise.

    I think we should have a new thread. Instead of Pension VS ISAs, it should be Pension + ISAs.
    .

    The implication of your comment is that both are equally as important. With that I agree wholeheartedly. Maybe the new thread should simply be called "Retirement Planning".
  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    EternallyGrateful wrote: »
    The implication of your comment is that both are equally as important. With that I agree wholeheartedly. Maybe the new thread should simply be called "Retirement Planning".

    Maybe we could even have a separate board, and people could start many threads about retirement planning and they could have more meaningful subjects.

    Perhaps someone could suggest it to Martin...



    :D
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • fairleads
    fairleads Posts: 595 Forumite
    andylcq wrote: »
    both have tax free growth

    True, but only one has 100% tax free income in retirement
  • dunstonh
    dunstonh Posts: 119,836 Forumite
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    fairleads wrote: »
    True, but only one has 100% tax free income in retirement

    Only one isnt included the estate for IHT purposes.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    atush wrote: »
    I think we should have a new thread. Instead of Pension VS ISAs, it should be Pension + ISAs.
    .

    Good suggestion. As too few are saving enough for their later years full stop.

    In reality a far bigger problem.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    fairleads wrote: »
    True, but only one has 100% tax free income in retirement

    True, but only one avoids huge amounts of income tax, a nasty bodge of NI, and benefits from employer contributions on the way in.

    We have pensions and ISAs. I know roughly what income we'll be getting from each, and what the taxation situation will be.

    If it were possible, I'd be putting more into both, but particularly pensions.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • fairleads
    fairleads Posts: 595 Forumite
    dunstonh wrote: »
    Only one isnt included the estate for IHT purposes.

    And neither is the first 340K of ours. Plus the surviving spouse still has control over our pot and sans 55% tax.
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