S&S ISA > Pension?

MK62

Its comforting to know that I can access this anytime should I really need it

That's the beauty of ISAs for general saving......unfortunately, in terms of retirement planning, it's arguably one of the main drawbacks, unless you are very disciplined.
While it may seem a bit draconian when you are young, there is a very good reason why pension money is locked away until later in life.

Another thing which people may (or may not ) care about, is that in the event of untimely demise, pensions are currently treated more favourably in general than ISAs, in terms of your estate and potential inheritance tax your beneficiaries may face.

Oliver1191

Thanks zola - good thread. It's an issue i often think about at 35.

does anyone invest in their ISA more than their pension?

In 2 months time, i will have £700 a month to invest. My 3 main investment vehicles are my sipp, lisa and s&s isa.

Although i might change my mind in the future, i'm thinking of putting 330 a month into the lisa. This can be accessed at 60 and combined with the government bonus is attractive.

I'm going to put 25 a month into my isa.

The rest will go into my sipp.

I want to max-out the tax relief and bonus as much as i can for as long as i can.

That's the plan...for now!

Zola.

Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

With the way they keep bumping it up.

Paul_Herring

Zola. wrote: »

Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

With the way they keep bumping it up.

Current thinking is that they're going to tie access to personal pensions to be whatever your state pension age is, minus 10 years, however they've not yet got round to actually passing anything to do so.

Currently, you're probably looking at 58.

lisyloo

Zola. wrote: »

Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

With the way they keep bumping it up.

One needs to be aware that the rules can change.
Moving it to 60 sounds draconian right now (I'm 49 and hoping to retire at 55), but a rise in age is something you should bear in mind especially as it's over 2 decades away for you.

jamesd

Salary sacrifice significantly boosts the value of pension contributions for you, and no NI on the way out. So pension for retiring at 55 - or whatever it increases to - and ISA from provision before that. Pension lifetime allowance is also something to consider.

VCTs are worth a look because they combine 30% initial tax relief with only a five year lock in. You might well be able to make your remaining income tax free if you can afford to defer 70% of it for five years.

Paul_Herring

and no NI on the way out

Hmm. Given the noises being made at the moment...