Pension. Isa dilemma

kidmugsy

stephen160 wrote: »

or leaving the funds in my isa for greater flexibility.

Once you're past 55 ISAs don't have a lot more flexibility, do they? Unless you were to want to lay your hands on such a large sum that taking it from a pension would make you a higher rate taxpayer? In terms of investments you can hold I expect that SIPPs are more flexible than ISAs. They can also let you claim back withholding tax on dividends from some jurisdictions e.g. the US.

If the 25% TFLS survives, and if basic rate tax remains at 20%, and if you remain a basic rate taxpayer, then a pound put into (say) a SIPP is worth 6.25% more than a pound put into an ISA.