• Rachael Panteney

Saving for retirement...Pension or ISA?

A common question, with no one-size-fits-all answer

It all depends when you need the money, as well as how you are planning to spend it


• For personal contributions HMRC rebates the tax you've paid into the pot. £100 of your money becomes £120 in the pension

• Pensions sit outside your estate for inheritance tax purposes, allowing you to pass money to beneficiaries free of tax

• When you take money out of your pension, the first 25% is tax-free

• Pensions cannot be accessed before age 55 (this will rise in coming years)

There are both annual and lifetime restrictions as to what you can pay in tax free, dependent on your earnings


• Your money is tax free on withdrawal

• You are not restricted to how you access the money (except with a Lifetime ISA )

Total Isa maximum annual contributions are £20,000 in the 2021/2022 tax year

In many cases using a Financial Adviser to utilise a mixture of both Pensions & ISAs with a carefully planned withdrawal strategy will be the best way to save and spend in the long term

To find out more about how Willow Tree Financial Services can help you achieve your financial goals, Contact us or call Rachael on 01323 436680 and book a FREE initial consultation today.

**The value of pensions and investments – as well as the income they produce – can fall as well as rise. You may get back less than you invested. Tax treatment varies according to individual circumstances and is subject to change**

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