Am i just doubling my money?

harvoo

Hello, I’m not sure how an isa works but my company offers a corporate ISA with a matched contribution. I currently do the maximum contribution for pension at 6% and they give 14%. However i have just noticed the ISA but have no idea how it works, i think they are matching 3%? Does that mean i can put 3% and just double my money instantly?

wmb194

harvoo said:

Hello, I’m not sure how an isa works but my company offers a corporate ISA with a matched contribution.

I currently do the maximum contribution for pension at 6% and they give 14%.

However i have just noticed the ISA but have no idea how it works, i think they are matching 3%? Does that mean i can put 3% and just double my money instantly?

Diageo? 

"I currently do the maximum contribution for pension at 6% and they give 14%."

The last row in the table states that if you contribute 6% to your pension then it won't contribute anything to the Isa.

https://www.mydiageopension.com/en/diageo-pension-plan/other-savings-options/diageo-individual-savings-account-isa

Altior

The 6% contribution is more valuable. Obviously if you went down to 5% to get the ISA contribution of 1%, you 'sacrifice' 3% of employer pension contribution. 

saajan_12

harvoo said:

Hello, I’m not sure how an isa works but my company offers a corporate ISA with a matched contribution. I currently do the maximum contribution for pension at 6% and they give 14%. However i have just noticed the ISA but have no idea how it works, i think they are matching 3%? Does that mean i can put 3% and just double my money instantly?

No, because you're getting the maximum pension contribution, they don't also contribute in the ISA. It wouldn't make sense to reduce your pension contribution as then you'd lose more in the pension than you gain in the ISA. 

You can still put in up to 20k a year into ISAs in total, whether in that one or your own. Just the company won't contribute. 

vacheron

Personally, I would stay maxed out at the 6%(+14%) pension.

However the tradeoff could be useful if you were saving for something that you required before you turned 55-58. This could then be a good way of doubling your money into an ISA which you could use for say a house deposit, or if you planned to retire before you could access your pension and needed some funds to see you through the first few years.

Albermarle

Could be of interest to know that a company adding 14 % to your pension is very much at the high end . Many only add the legal minimum of 3%. Even most big corporations would probably add more like 7 to 10 %.
So if you ever change jobs you should take that into account. 

harvoo

wmb194 said:

harvoo said:

Hello, I’m not sure how an isa works but my company offers a corporate ISA with a matched contribution.

I currently do the maximum contribution for pension at 6% and they give 14%.

However i have just noticed the ISA but have no idea how it works, i think they are matching 3%? Does that mean i can put 3% and just double my money instantly?

Diageo? 

"I currently do the maximum contribution for pension at 6% and they give 14%."

The last row in the table states that if you contribute 6% to your pension then it won't contribute anything to the Isa.

https://www.mydiageopension.com/en/diageo-pension-plan/other-savings-options/diageo-individual-savings-account-isa

Ahh thank you, i didn’t realise the contributions for the pension correlated to the isa contributions in the table. Makes sense, will stick to the pension thanks