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Pension or ISA
Comments
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there is a small real advantage in that you can take all your money out of an ISA at any time, but not out of a pension. but you are overstating it by a long way.
you are free to switch your investments within a pension, with a very wide range of possibilities. wider than choices within an ISA, though narrower if you count the option of taking it out of the ISA and then doing absolutely anything with it.
not being able to spend it until age 55 is a restriction, but only really a problem if you put too much of your money in pensions. anybody who has any money to invest is likely to want to use a substantial part of it to save for retirement. though if you're younger, it may be reasonable to postpone saving into a pension so that you can (for instance) save a deposit for a house more quickly.
but if saving for retirement is your aim, and your employer is offering matching contributions, then a pension has got to be the best option.0 -
ot being able to spend it until age 55 is a restriction, but only really a problem if you put too much of your money in pensions.
But then the clue is in the name. They dont call it pension for nothing.;)
I never understand the argument that some give when they say that "putting it in the pension ties the money up until retirement and that makes it a bad thing". What is the point of putting money towards your retirement planning if you want to draw it out next year to pay for a holiday. That is what your savings are for.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.0 -
What is the point of putting money towards your retirement planning if you want to draw it out next year to pay for a holiday. That is what your savings are for.
true. though accessible investments can be used as a second tier of emergency funds (after cash savings) in case of unemployment.0 -
Lots of good info guys - thanks0
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If the assets the pension are invested in go sour, how can the money invested be retrieved?.... simple, it can't.
In a pension, you can hold equities, fixed interest, property, cash and even gold should you so desire. If all of those go sour, then we all have worse problems.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.0
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