Basic Question about pensions and death.

dunstonh

I agree an ISA is usually a better choice if there is no company contribution.

Its not as simple as that though. As far as income provision goes, nothing [conventional] beats a pension. Especially if you are in receipt of working/childrens tax credits (where effective tax relief is increased beyond the 22% currently) or a higher rate taxpayer. Indeed, it is technically possible to get 72% effective tax relief if you meet the optimal criteria.

The idea of a pension is to provide income in retirement. Not to provide an inheritance to your children. If you are more concerned about providing for your children than yourself then you dont do a pension (unless you are terminally ill in which case you do).