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Isa Or Private Pension?

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xud | 18:55 Mon 07th Apr 2014 | Personal Finance
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I heard that a stocks and shares ISA is a viable alternative to a private pension. Is it worth it?
I don't know where to start. I don't want to make a quick buck after 3 years, I want to keep paying in for the next 20+ years to get a steady income when I retire. Any ideas?

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Stocks and shares are subject to the vagaries of the stock market - I personally would prefer the pensions option, but it all depends on your personal circumstances. The ISA will give you annual interest, not a monthly income.
You need proper advice, contributions made to a pension scheme are free of tax, monies earned in an ISA are also free of tax but that's not the same thing at all, you will have paid tax on the money you invest. Also, most pension schemes are based on the stock market, certainly in the early years, less so when nearing retirement. In essence, the earlier you start saving for your retirement the better as a) your money has longer to grow and b) the long timeframe allows for most vagaries of the stock exchange to even themselves out. Basically you need Independent Financial Advice, see here for some guides http://www.moneysavingexpert.com/savings/how-to-pay-for-financial-advice
I am no expert but I'd not see an ISA investment as a substitute for a pension, more as something you do in addition, if you can afford to. Do you have an employer who offers a pension scheme ? In the past those have been hard to beat; but of course they are all substituting "guaranteed" payouts for "guaranteed" contributions these days, so they may not be any better than doing your own pension scheme search.

Not that any provision for older age is perfect. You do what you think best and society has a way of ensuring it wasn't as wonderful as you thought. I reckon I should have bought and buried gold bars in the garden.

(Anyway most self provisioning these days results in being ineligible for stuff those who couldn't or didn't bother to self provide, are offered.)
>Anyway most self provisioning these days results in being ineligible for stuff those who couldn't or didn't bother to self provide, are offered.)

This has been the case, but the new universal pension (which consolidates state pension + any second state pension + pension credit) should mean the end of that, although political pressures may lead to removal of some benefits such as winter fuel payment or bus passes being removed for better off pensioners

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