Private pension scheme vs mini cash ISA ?

ihavevavavoom

Is there any point in starting a pension scheme when I have an ISA paying out 6.25% interest on the maximum deposit of 3k each year?

What interest rate do you get on average on a private pension scheme and why should I consider starting one?

Can anyone convert my thoughts? :rotfl:

dunstonh

Is there any point in starting a pension scheme when I have an ISA paying out 6.25% interest on the maximum deposit of 3k each year?

Will you get 6.25% every year? No.

What interest rate do you get on average on a private pension scheme and why should I consider starting one?

You dont get interest on a pension. You invest typically with pensions and whilst that means you investments go up and down in the short term, you would expect a long term average that beats cash rates. Typically towards or over double digit p.a.

Just 2% a year difference in returns can double your pension in retirement if you are in your 20s.

ihavevavavoom

so you wouldn't recommend using an ISA as your "pension"?

jem16

A stocks and shares ISA is fine as a "pension", just not a cash ISA.

Perhaps a read through this thread ISAs v Pensions might help.