Money Lesson Single

Pension or ISA?

You have money left at the end of the month and two wrappers to put it in, and everyone has an opinion. The same pound, saved both ways for thirty years and then actually spent, settles it.

Employment Expenses ISA Savings Account

Put it in the pension

2 Goals

The spare money goes into the workplace scheme, raising the contribution from 5% of pay to 13%.

Try this plan

Employment Expenses ISA Savings Account

Put it in the ISA

2 Goals

He keeps the pay, and the take-home it produces goes into the stocks and shares ISA instead.

Try this plan

Put it in the pension Put it in the ISA

Saving the same take-home pound in the pension leaves you ~£291.8k better off by the end, and locked out of all of it until your late fifties.