I'm 23 and just starting out as a freelancer with only moderate earning prospects (although I do love my job!). My husband is doing a postgraduate degree which will get him a modestly paid job for life, often with a house attached. I haven't worked out a precise long term goal yet (my husband definitely wants to keep working forever barring illness but I'd like some degree of FI at some point) but whatever it is, saving lots is good. (Children not currently ever planned.)
I'm not sure where best to invest, though. I understand that both pensions and ISAs are tax free, but while it seems like the government gives me free money to put it in a pension, I obviously cannot withdraw it until I am WAY past the age when I would at least like to transition to working part time. But time is money and if I am going to invest in a pension I should do it while I am young, right?
At the moment, I put £50/month into a SIPP (token amount, started when I was 19, but reconsidering proper amount now I am earning) and any other savings (pretty ad hoc at present - we are living off my husband's stipend and saving my very erratic income) goes into a stocks and shares ISA.
1. Do I actually get more money in the pension or does it just feel like I do?
2. Is it worth investing in the pension at all when I could theoretically live off investment returns in much the same way?
3. How much of my income should go to long term (pension) and how much to medium term (ISA)?