ISA or pension 11 February 2022 at 12:46PM in ISAs & tax-free savings 7 replies 211 views

deutschrosi

I have just had the money back from my LCF Bond and wondering should I put this into an ISA/savings account/premium bond or move it into my pension fund? I may need the money at a later date so hesitant on the pension fund but any advice on where to put the money as a savings would be great.
Thanks
Rosie

Albermarle

To get better  replies , you need to supply more info . Such as
Age 
Current savings & investments ( if any ) 
Pension situation 
Mortgage etc.
Plus some idea of the amount of money you are talking about .

deutschrosi

I am 6 years off pension age, and have some investments in Santander. No mortgage although pay a lot of maintenance charges! The amount would be for £10,000.

dunstonh

Pension is the most tax efficient option of the things you list but you have the issue of not being able to access it until later.

Albermarle

I am 6 years off pension age

Presume you mean you are six years away from starting your State pension?

In which case money in a pension would be accessible when you need it as you can take from a pension from age 55.

The reason pension is recommended is that you get a tax benefit , but this can be limited by how much you earn . 

More questions

Do you have any pension provision  ( apart from the State one )

Are you working ?

deutschrosi

Yes still working and paying into a pension. 

Albermarle

deutschrosi said:

Yes still working and paying into a pension. 

Then probably makes sense for at least some of the money to go into the pension to get the tax benefit.
The max you can add in one tax year is = to your total salary before tax .
Minus your regular contributions and minus the tax relief .

deutschrosi

Thank you for the good advice