
• Break down the different types of ISAs and pensions
• Compare their tax benefits, access rules, and contribution limits
• Offer example scenarios so you can decide which is right for you, or how to use both
• Cash ISA: Tax-free interest, ideal for lower-risk savings
• Stocks & Shares ISA: Tax-free growth and dividends on investments
• Lifetime ISA (LISA): Up to £4,000 a year plus a 25% government bonus for first home or retirement savings (age restrictions apply)
• Junior ISA: Long-term savings for under-18s
• Workplace Pension: Auto-enrolment schemes where employers also contribute
• Personal Pension: Set up independently, includes stakeholder pensions and SIPPs (Self-Invested Personal Pensions)
• Annual allowance: £60,000 or 100% of your earnings (whichever is lower)
• Basic rate tax relief: £80 contribution becomes £100 in your pension
• Access age: 55 (rising to 57 from 2028)
• 25% tax-free lump sum on withdrawal, rest taxed as income
• ISA: Withdraw anytime without penalty (except LISA early withdrawals)
• Pension: Locked until 55/57, suitable for long-term retirement savings
• Young basic-rate taxpayer: LISA plus workplace pension contributions
• High-rate taxpayer: Maximise pension for higher tax relief
• Self-employed: Balance ISA flexibility with pension retirement benefits
• First-time buyer: Use LISA for 25% bonus towards your deposit
• Need money before 55 → ISA
• Higher-rate taxpayer saving for retirement → Pension
• Want both flexibility and tax relief → Split between both
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