Cash isa v S&S isa - with retirement getting closer

Mick70

Morning all

I am hoping to retire in 4-5 years from now (ideal scenario 4) 
Already have a db pension and the past 4 year have been paying as much as can into my dc pension , and my wife's pension 

If I am looking to max out the ISA allowance also this year , with a timescale in mind of retiring in 4 year say (5 at push) , am i better off payiong into a cash isa now rates have risen slightly ?   my current S&S Isa is showing negative growth (-4%) 

thanks any advice

mick

mebu60

I am retired and have been putting new money into a cash ISA for the past few tax years, even before recent rate rises, for the security aspect. I have substantial S&S ISA holding already. 

No-one can say if you will be better off one way or the other as it's totally unknown. How much risk are you comfortable with with retirement imminent? If undecided, you can split funds across both.

dunstonh

If I am looking to max out the ISA allowance also this year , with a timescale in mind of retiring in 4 year say (5 at push) , am i better off payiong into a cash isa now rates have risen slightly ?   my current S&S Isa is showing negative growth (-4%) 

Which fits best with your objectives?

i.e. if you are drawing the money out in 4-5 years time, then cash ISA seems more reasonable.     However, retirement doesnt mean you are going to draw it all out.  But that bit is unclear.

You mention you are maxing out your pension contributions.   Just checking you are aware that the pension allowance has gone upto £60k this year (may or may not apply depending on your income)

Mick70

dunstonh said:

If I am looking to max out the ISA allowance also this year , with a timescale in mind of retiring in 4 year say (5 at push) , am i better off payiong into a cash isa now rates have risen slightly ?   my current S&S Isa is showing negative growth (-4%) 

Which fits best with your objectives?

i.e. if you are drawing the money out in 4-5 years time, then cash ISA seems more reasonable.     However, retirement doesnt mean you are going to draw it all out.  But that bit is unclear.

You mention you are maxing out your pension contributions.   Just checking you are aware that the pension allowance has gone upto £60k this year (may or may not apply depending on your income)

yes already maxing out pension this year, hopefully, full 60k

come 4-5 years we both hopefully retire together (age aprox 57 / 59) and so will then start taking out monies each year (not all at once) , hopefully it lasts 20 years,  we will both get full SP