I’ve been wondering for a while about the validity of using ISAs to fund your retirement, as a possible alternative to contributing to a traditional pension. With the complexity surrounding pensions, ISAs could provide a simpler, more accessible option.
There are of course plenty of factors to take into account: tax relief on contributions, annuity rates, contribution levels, accessibility of money etc etc.
In Pensions versus ISAs, The Motley Fool has looked into this subject and has done a more detailed analysis than I could probably do.
Of course, the final conclusion is that both financial products have their merits, and possibly the most sensible answer is to use a combination on both, rather than worrying about whether one is better than the other.
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