Re: retirement, SIPP and ISA


<silicono2@xxxxxxxxx> wrote in message
news:1156795436.854488.301300@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Just started working and need to get straight some stuff about saving
for eventual retirement,

Hmm - a (very) simple view to start with:

An ISA can be self select - where you pick the investements or it can be a
unit/investment trust where a manager makes the detailed decisions for you
(and charges you), you have to pick a vague area to invest in.

Pension savings - can be self select - SIPP or via a fund. (pretty much as
above).


The future tax treatment of both ISA's and pensions is not guaranteed
(especially not the tax-free lump sum).

Pensions you cannot get to until you are 55 (50 currently rising til 2010)
ISA's you can cash in tomorrow and blow the lot on a nice young lady.
(pro's and con's to both)

ISA's are taxed on the way in
Pensions are taxed on the way out.

Pensions win if you pay 40% income tax (IMO) otherwise the decision is not
so clear cut.


.