Which to choose, an ISA or a Pension?

In the latest Budget the Chancellor announced the introduction of the Lifetime ISA (LISA), which provides investors between the ages of 18 and 40 the opportunity of saving for both their first home and retirement.

ISAs have been around since 1999 and have remained a fundamentally popular way of saving tax efficiently. Pensions on the other hand, have been around a lot longer, but have been subject to considerable changes over the years, making decisions confusing for many.

So does this new breed of ISA change the savings landscape? We don’t think that it does significantly, but instead it provides people with a greater range of options and bearing in mind that the LISA is only available to people within defined age brackets, the mainstream pension and ISA solutions are likely to retain their appeal.

To try and provide some clarity, we have created a quick reference guide that outlines the main features of some of the tax efficient vehicles available. This isn’t exhaustive (some of the more complex or riskier solutions have not been included) and in no way infers a recommendation for any of the products mentioned, but it is aimed at being a high level summary of some of the key features and benefits. You can access the guide by clicking here.

Armstrong Watson Financial Planning is an independent financial adviser and has Financial Planning Consultants across our 15 office locations. We can work alongside your tax adviser to ensure that your financial plans work in tandem. Contact us to discuss your requirements on: 0808 144 5575 or email us: help@armstrongwatson.co.uk.

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