Saving in pension fund or ISA

lewie1966

Hi Guys,
Not sure if this subject has been discussed before but I already contribute 5% of my salary into my workplace fund my employer also matches that. I want to increase by another 5% but my employer will only contribute the 5 % do you guys think I would be better off adding to my pension or putting difference in ISA ?.
Thanks in advance Paul.

kidmugsy

Are you a higher rate taxpayer?

Does your employer offer salary sacrifice?

How old are you?

lewie1966

Hi.
I'm a basic rate tax payer
My company does not offer salary sacrifice
I am 50 years old this June

bigadaj

lewie1966 wrote: »

Hi.
I'm a basic rate tax payer
My company does not offer salary sacrifice
I am 50 years old this June

On that basis then would normally tend towards a s&s isa.

Do you have a decent cash savings buffer, if not then concentrate in building this up.

One advantage at fifty is that you only have around five years before you could access the pension and you would get a tax uplift on contributions now, plus the tax free lump sum, so this might be worth considering.

jamesd

If you won't want to retire before you reach 55 the pension tax relief offers you the better deal, with the money accessible from that age. The pension option has more investment options than the ISA.

You might want to consider using a non-work pension just to increase your flexibility, while continuing to pay into the work one.