Author Topic: which way works better? pension or ISA first?  (Read 620 times)

mohawkbrah

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which way works better? pension or ISA first?
« on: March 20, 2018, 07:41:11 AM »
should i invest in my ISA stocks and shares first and if i max that out, then my pension? im in the 20% tax bracket. My employer contributes 8% of salary to pension whether i pay into it or not.

PhilB

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Re: which way works better? pension or ISA first?
« Reply #1 on: March 20, 2018, 03:52:51 PM »
should i invest in my ISA stocks and shares first and if i max that out, then my pension? im in the 20% tax bracket. My employer contributes 8% of salary to pension whether i pay into it or not.
No-one can answer that without a lot more information.  For starters:
  • How old are you and when do you hope to FIRE?  If you are in your twenties and plan to FIRE at 40 then pensions don't work for you.  If you're in your 40s and plan to go at 50 you'd be mad not to.
  • What's your expected career trajectory?  It would be crazy to put into a pension @20% relief if you expect to be able to get 40% relief in a couple of years time