Retirement Planning
Saving for retirement now can give you a comfortable life in the future.
Retirement planning and saving for your retirement will help you meet your future goals and achieve your desired lifestyle. The main ways you can save for retirement are through Pensions, ISAs and Investment Funds.
Pensions
A pension is a tax efficient savings plan with the specific purpose of securing an income for you when you stop working and reach retirement age. Pensions benefit from special tax treatment – for every £1 you invest the government contribute a further 25p – and higher rate taxpayers can claim a further 25p tax relief via self-assessment.
ISAs
An ISA is simply a tax efficient 'wrapper' that surrounds a specific investment, such as a unit trust, shares or cash savings account. They offer attractive long term tax benefits coupled with greater flexibility than pensions.
Funds
Funds such as unit trusts and OEICs are the types of investment that you can purchase within ISA and Pension. You also have the option of investing into funds outside tax wrappers.
Common questions
Should I invest in a pension or ISA?
Both ISAs and Pensions are tax efficient wrappers that you can use to save money for the future. The decision of whether to invest in one or the other is not always clear-cut.
Do I have to choose one over the other?
No, it is often better to have a mix of ISAs, Pensions and Funds. This enables you to be flexible in your approach to investing and means you can take advantage of the relative merits of each.
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