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  • FIRST POST
    • Zola.
    • By Zola. 23rd Apr 18, 10:19 AM
    • 1,222Posts
    • 482Thanks
    Zola.
    S&S ISA > Pension?
    • #1
    • 23rd Apr 18, 10:19 AM
    S&S ISA > Pension? 23rd Apr 18 at 10:19 AM
    I invest in both a pension with work, and also a S&S ISA every month.

    Just curious, does anyone invest in their ISA more than their pension?

    I guess the benefits with the pension is that its locked away, and the government add a bit (yet they tax you on the other side after the first 25%).

    As a 33 year old, conscious of the constant moving of goal posts (with when you can access your money), it concerns me.

    Does anyone feel the ISA route is better?

    - Yours to access anytime if really needed
    - No government tax on gains if investing within 25k limit each year

    Just interested to hear your thoughts.
Page 2
    • Zola.
    • By Zola. 26th Apr 18, 12:33 PM
    • 1,222 Posts
    • 482 Thanks
    Zola.
    Isas dont protc your money from creditors, and are taken into acct should you lose your job and need to get benefits.
    Originally posted by atush
    Thats a very interesting point, I didn't know that! Heaven forbid I would need to go on benefits though.

    I will probably maintain what I am doing, slightly more in pension but I will keep investing in my S&S ISA also.

    Its comforting to know that I can access this anytime should I really need it, but the long term goal is to let it sit there indefinitely and only take from it 20 years from now as needed.
    • MK62
    • By MK62 26th Apr 18, 7:47 PM
    • 93 Posts
    • 70 Thanks
    MK62
    Its comforting to know that I can access this anytime should I really need it

    That's the beauty of ISAs for general saving......unfortunately, in terms of retirement planning, it's arguably one of the main drawbacks, unless you are very disciplined.
    While it may seem a bit draconian when you are young, there is a very good reason why pension money is locked away until later in life.

    Another thing which people may (or may not ) care about, is that in the event of untimely demise, pensions are currently treated more favourably in general than ISAs, in terms of your estate and potential inheritance tax your beneficiaries may face.
    • Oliver1191
    • By Oliver1191 26th Apr 18, 9:37 PM
    • 49 Posts
    • 13 Thanks
    Oliver1191
    Thanks zola - good thread. It's an issue i often think about at 35.

    does anyone invest in their ISA more than their pension?
    In 2 months time, i will have 700 a month to invest. My 3 main investment vehicles are my sipp, lisa and s&s isa.

    Although i might change my mind in the future, i'm thinking of putting 330 a month into the lisa. This can be accessed at 60 and combined with the government bonus is attractive.

    I'm going to put 25 a month into my isa.

    The rest will go into my sipp.

    I want to max-out the tax relief and bonus as much as i can for as long as i can.

    That's the plan...for now!
    • Zola.
    • By Zola. 10th May 18, 1:16 PM
    • 1,222 Posts
    • 482 Thanks
    Zola.
    Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

    With the way they keep bumping it up.
    • Paul_Herring
    • By Paul_Herring 10th May 18, 1:25 PM
    • 6,284 Posts
    • 2,997 Thanks
    Paul_Herring
    Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

    With the way they keep bumping it up.
    Originally posted by Zola.
    Current thinking is that they're going to tie access to personal pensions to be whatever your state pension age is, minus 10 years, however they've not yet got round to actually passing anything to do so.

    Currently, you're probably looking at 58.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • lisyloo
    • By lisyloo 10th May 18, 1:31 PM
    • 21,836 Posts
    • 10,554 Thanks
    lisyloo
    Would it be fair to assume that I, as a 33 year old, wont be able to access my personal pension to at least 60 by the time it comes round?

    With the way they keep bumping it up.
    Originally posted by Zola.
    One needs to be aware that the rules can change.
    Moving it to 60 sounds draconian right now (I'm 49 and hoping to retire at 55), but a rise in age is something you should bear in mind especially as it's over 2 decades away for you.
  • jamesd
    Salary sacrifice significantly boosts the value of pension contributions for you, and no NI on the way out. So pension for retiring at 55 - or whatever it increases to - and ISA from provision before that. Pension lifetime allowance is also something to consider.

    VCTs are worth a look because they combine 30% initial tax relief with only a five year lock in. You might well be able to make your remaining income tax free if you can afford to defer 70% of it for five years.
    • Paul_Herring
    • By Paul_Herring 10th May 18, 4:02 PM
    • 6,284 Posts
    • 2,997 Thanks
    Paul_Herring
    and no NI on the way out
    Hmm. Given the noises being made at the moment...
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
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