ISA / Pension

Duncs70Duncs70 Forumite
1 Post
MoneySaving Newbie
I currently put money into an ISA every month, 
would this money be better left in here or put into my pension where I get 40% tax relief ?
I think it will be the pension but I am after advice to what is the best,  thanks 


  • eskbankereskbanker Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As a rule of thumb, pension will beat ISA, on account of the 25% tax-free options on the way back out again, which generally tips the balance, but it's impractical to generalise that this is best for everyone, as we all have different individual circumstances.  One differentiating factor, for example, is access - pension money is locked up until 55 (+) whereas ISA money is accessible anytime....
  • AlbermarleAlbermarle Forumite
    8.3K Posts
    1,000 Posts Third Anniversary Name Dropper
    From a tax point of view , investing in a pension is very beneficial for a highe rate taxpayer , especially if you will be a basic rate taxpayer in retirement ( not many people pay 40% tax on retirement  income) and you are investing specifically for retirement.
    If you are likely to need the money before your mid to late fifties then the ISA would be better. Many people invest in both at the same time .
    Difficult to say anything else with the lack of any personal or financial details provided.
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