ISA vs Pension

telltel

Can somebody give me some advice.

I currently have a Unit Trust based ISA (Legal and General Low Cost Mortgage ISA) which no longer will be used against the house purchase which it was bought to cover. This product also provides life and critical illness cover to the value of the original mortgage.

My personal pension situation consists of a collection of low value company pensions.

My general feeling, is that it would make sense to somehow move the value in the ISA into some kind of pension.

I also have a share portfolio worth about £30K.

Everything seems to point me in the direction of a SIPP.

Is this the most efficient method of doing this?

Thanks

Terry

dunstonh

Everything seems to point me in the direction of a SIPP.

Is this the most efficient method of doing this?

Why SIPP?
What has made you feel that pension instead of ISA is better for you?

jamesd

Why SIPP instead of a normal personal pension? Do you intend to hold shares directly or ETFs or some of the other non-fund investments that a normal pension pot can't hold?

Have a read of the sticky ISA vs Pensions discussion for some thoughts on the costs and benefits of each. Generally it's probably not a good idea to move money from an ISA to a pension unless there's some significant value to the tax relief and no plans to retire early that may need the higher income drawing rate that you can get from an ISA.

atush

The ISAs are in a good tax wrapper. If I was going to move any money it would be the share portfolio as if you moved it you could put it in a tax free wrapper.

Choose a SIPP if you like share dealing, and a PP if you want to let the fund managers make daily decisions for you.