ISAs v Pensions: The Official Retirement Debate

fairleads

atush wrote: »

Perhaps we should invite Mrs Fairleads (if she is still with you ) to join the discussion:D

Tacky - but then it takes all sorts.

knuckledragger

... so, how much were the paracetamol in the end?

EternallyGrateful

fairleads wrote: »

1) I prefer the word robust. A method to get to the heart of the matter.
2) A poor analogy, the cost is on the packet, visible for all to see. However, why do advisers get so tetchy when costs are mentioned? And thats all i did, remind all and sundry there could be a cost implication to the advice proffered by Aegis. If thats confrontational well may be its all in the eye.............

An excellent analogy and you know it. Again you are being confrontational.
There are none so blind as those who will not see.

EternallyGrateful

knuckledragger wrote: »

... so, how much were the paracetamol in the end?

No idea. It's part of the barcode so you have to ask an assistant!

fairleads

EternallyGrateful wrote: »

No idea. It's part of the barcode so you have to ask an assistant!

Who will no doubt give an accurate and honest answer.

chris_norton

I am struggling with this myself at the moment and it is a brilliant debate. I have invested almost £1,500 into an ISA and it has £1,473 in it due to the poor performance of the markets. I am deciding whether to just bang it all in my pension and get the tax relief.

Which brings me onto my next question. If I took £1,500 out of my isa and stuck it in my pension what would that get me from the tax man if I did it before April?

Thanks for your help.

Paul_Herring

chris_norton wrote: »

I am struggling with this myself at the moment and it is a brilliant debate. I have invested almost £1,500 into an ISA and it has £1,473 in it due to the poor performance of the markets.

What difference do you think that money being in a pension fund would make?

jem16

chris_norton wrote: »

I am deciding whether to just bang it all in my pension and get the tax relief.

It won't perform any differently in a pension than in an ISA. The only difference will be the tax relief which, depending on your tax status now and then, will be paid back when you take the pension.

Which brings me onto my next question. If I took £1,500 out of my isa and stuck it in my pension what would that get me from the tax man if I did it before April?

Depends on your tax status now. Are you a basic rate or higher rate taxpayer?

dunstonh

I have invested almost £1,500 into an ISA and it has £1,473 in it due to the poor performance of the markets.

What is your definition of poor performance?

I am deciding whether to just bang it all in my pension and get the tax relief.

pensions and ISAs can have the same investments. So, what makes you think the return would have been different? The return doesnt change because of tax wrapper.

EternallyGrateful

chris_norton wrote: »

I am struggling with this myself at the moment and it is a brilliant debate. I have invested almost £1,500 into an ISA and it has £1,473 in it due to the poor performance of the markets. I am deciding whether to just bang it all in my pension and get the tax relief.

Which brings me onto my next question. If I took £1,500 out of my isa and stuck it in my pension what would that get me from the tax man if I did it before April?

Thanks for your help.

There's no difference between the funds available to an ISA investment or those available to a pension investment.
Fund performance is quite variable so, whilst overall market performance could be poor, there are funds that could be perfoming very well. The oposite is also the case so you just have to choose the funds you invest in very carefully.
If you put your money into a pension fund there are limitations on when you can start to take an income from it, Plus, when you receive money from a pension (apart from the first 25%) it's liable for tax. That, to a large extent, cancels out the tax incentive of investing in a pension.
Taking money from an ISA is not liable for tax.
Although investments are a matter of personal choice I can say that at the ripe old age of 58 I'm happy that I chose to spread my investments over cash ISA's, Stocks and Shares ISA's and pension funds.