S&S ISA or Pension

gadgetmind

There is also this forum's big old sticky thread!

https://forums.moneysavingexpert.com/discussion/375217

jamesd

The pension is way better if you'll be a basic rate tax payer in retirement.

In only five years you have another pension advantage coming up: you can take pension income via income drawdown and pay that income back into more pension contributions, getting a second chunk of tax relief on the same money. Assuming the total contribution value is within the annual allowance at the time. The lump sum should be taken and that can either be invested in S&S ISA over time or, subject to the recycling limits set out by HMRC, also paid into a pension for you. The recycling done via salary sacrifice makes this a better deal than it usually is.