Pension or isa tax free

joisa

Hello recently sold my house and wondered what’s best to do with spare money put into pension or isa ? 

grumiofoundation

Since you haven't said what you plan to do with the money, or how much the money it is very hard to say. 

If you are saving for retirement then a pension is probably your best bet, if you want to access the money before retirement then it's not.

Contribution limits exist for both products. 
ISA - limited to 20k per tax year.
Pension - limit to how much you can get tax relief on https://www.gov.uk/tax-on-your-private-pension/annual-allowance. 

dunstonh

ISAs and pensions are both tax wrappers.  Both can have the same charges and the same investments.  The only differences are the tax handling and withdrawal process.    

In some objectives, an S&S ISA would be better.  In other objectives, the pension wrapper would be better.  Without any information, it is impossible to say which is best for you.

Albermarle

joisa said:

Hello recently sold my house and wondered what’s best to do with spare money put into pension or isa ? 

You need to supply a lot more info to get any sort of sensible answer. Such as 

How old are you ?- married? kids?
Do you intend to buy another house ? If so when?
Do you have any savings or investments currently ?
Do you have a pension currently?
Are you working ?

etc etc

lr1277

If you are not going to buy another property with the money, when do you intend to spend it or when will you need it?

joisa

Hello sorry new to this so I’ve got cash from selling family home and I’ve already purchased a new home and because I’ve not ask husband for half his pension I ve only got my nest works pension only starts when I had to enrol as always worked part timer I’m 54 single no dependants now . House needs doing up so should leave 100k plus after that .so of course if I earn interest I ll be over 1100 I work in Accts and been good with money using this site to find best rates for saving and spider my funds to earn . But now I need to save tax free part of it . I still work . Hope that helps 

dunstonh

Sjoisa said:

Hello sorry new to this so I’ve got cash from selling family home and I’ve already purchased a new home and because I’ve not ask husband for half his pension I ve only got my nest works pension only starts when I had to enrol as always worked part timer I’m 54 single no dependants now . House needs doing up so should leave 100k plus after that .so of course if I earn interest I ll be over 1100 I work in Accts and been good with money using this site to find best rates for saving and spider my funds to earn . But now I need to save tax free part of it . I still work . Hope that helps 

Age 54 with a £100k in the bank (after planned expenses) with virtually no retirement provision.  So, pension would be a good place to start.  Then probably S&S ISA.   But we are still light on information to go much beyond that.

Albermarle

Pension is usually the best bet due to the tax benefit , but the maximum amount of tax benefit you can get  depends on your earnings .