Pension or ISA

Pipz

Morning all,

I thought I'd ask this here rather than the savings board:

My father is of an age where the new reforms will apply for him and in light of this his DC pension pot becomes as flexible as an ISA with regard to withdrawals (charges aside).

My question is this - as a 20% tax payer - is he better off making further deposits into the DC pot or depositing money into an S&S ISA?

Any advice greatly appreciated

jamesd

For the short term, S&S ISA, until we know which party wins the general election, and perhaps until after the 2016 Budget. This is because some of the parties have said that they want to increase basic rate income tax relief on pension contributions.

Longer term the pension tax relief is an advantage that shouldn't be sacrificed now pensions are more flexible.

atush

Personally I would go with the pension. If just to open it this WE (online) and put money in before monday.

Then with income add to S&S isas until may if you like.