As we approach tax-year end, the Money Observer team consider which is the better shelter for your lump sum: pensions or Isas.
Money Observer editor Faith Glasgow and deputy editor Kyle Caldwell examine whether an Isa or pension is the better wrapper for your money at the end of the tax year.
In addition, the pair discuss retirement income strategies, including how to boost income during the first year.
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what are my chances of getting involved as a complete novice in
there are far too many ISAs investments. How does one decide on which one to choose as it is a big amount & far too many ifs & buts - example charges levied. ISA investments change the actual company chosen because they suggest one is not doing well than the other. A layman like myself gets lost & when you consult the financial advisers they are no better than ordinary Mr Joe,
Pensions vs ISAs
The article while a good introduction, fails to mention two of the major risks of investing in a SIPP. The first is the penalty you suffer (12.5%) if you contribute at the standard rate of income tax, but later are in receipt of the pension at the higher rate of income tax. The second is if you exceed the Life Time Allowance, with the 55% tax take.