Pension v ISA

mistryman4431

I've recently turned 60 and with retirement only a few years away I want to get the best out of my private pesion. I've been investing in a stocks and shares ISA since 2018 and the return have been really good. However, in 2020 I decided to amalgamate all my small pensions into one. 
I've been advised by an independent financial advisor to add to my pension on a monthly basis, and reduce the amount I pay every month into my Stocks and Share ISA. 
I'd be grateful for any thoughts, other people in a similar situation have ?

eskbanker

Pension usually beats ISA by virtue of the 25% tax-free element, and you can choose the same investments as your ISA within a pension, either within your existing one or another one if necessary.

Have you actually engaged an IFA for formal advice or was this just informal chat?  Obviously if it was the former then the adviser would have visibility of your full financial circumstances and be in a position to offer a more informed view than the opinions of anonymous internet strangers who can only see a very brief summary of what you choose to share!

Marcon

mistryman4431 said:

I've recently turned 60 and with retirement only a few years away I want to get the best out of my private pesion. I've been investing in a stocks and shares ISA since 2018 and the return have been really good. However, in 2020 I decided to amalgamate all my small pensions into one. 
I've been advised by an independent financial advisor to add to my pension on a monthly basis, and reduce the amount I pay every month into my Stocks and Share ISA. 

If you want to increase your pension that makes sense.

mistryman4431 said:

I'd be grateful for any thoughts, other people in a similar situation have ?

What were your adviser's reasons for this recommendation? Surely they are the ones with all the facts and should be able to explain the rationale to you. It's a bit odd that you are coming to a forum populated by people who know nothing about you other than a couple of lines of text, expecting them to come up with better responses than the IFA you've engaged and presumably have confidence in - why the need for further input from people who know nothing about you or your objectives?

dunstonh

I've been advised by an independent financial advisor to add to my pension on a monthly basis, and reduce the amount I pay every month into my Stocks and Share ISA. 

Until 2016, ISAs beat pensions for basic rate taxpayers in most scenarios.  Since 2016, its been the other way around.   

ISAs and pensions share the same investments and same charges.  So, the only difference is the maturity process and taxation.     If you are a basic rate taxpayer pre-retirement and post retirement, then the pension will be 6.25% higher than the ISA.  Maturity process is not an issue as you are 60 (its an issue if you want funds for earlier in life when you cannot access the pension).

As your IFA has given you advice based on knowing all about you, it would be inappropriate to contradict when we don't know a thing about you.

mistryman4431

Thank you for your comments and feedback. I appreciate what you're saying.