Pension, Isa or Lifetime Isa: What's the best tax-friendly investment for you?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 31 March 2022

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

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Summary

It's the time of year when we are urged to put our money into an Isa or pension, but faced with the choice which should you pick?

After all, most of us don't have the £52,000 needed to max out both (£20,000 into an Isa and £32,000 into a pension plus the £8,000 tax relief added).

So, we must make a decision: take the upfront tax relief of a pension and that lovely boost to the money you pay in, but not be able to get the cash until at least age 55, or opt for the tax-free gains of an Isa and its flexibility, but no contribution booster.

On this podcast, Georgie Frost and Simon Lambert look at the perks of each, where the drawbacks are and how you can make an informed decision.

Plus, is the Lifetime Isa a better option for your hard-earned cash?

Also, on the show, they discuss the child benefit mess and how many mums are missing our on vital state pension credits, whether Chase's bank account is now Britain's best, and how to work out if buying an expensive electric car might save you money.

Transcript

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0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost and joining me today is editor Simon Lambert.
0:04.8	And coming up, where do you put yours? Savings, I mean, Issa, Lysa SIP, other acronyms are allowed.
0:10.9	Simon discusses the benefits and the pitfalls. Get your calculators at the ready.
0:15.0	We try to figure out if, despite the higher initial cost, an electric car would save you money overall.
0:21.1	Critics serve to the government to fix the seriously broken child benefit system,
0:25.5	and have we found the best bank account in Britain?
0:28.6	Don't forget, you know, with all the latest breaking money news,
0:31.5	just go to this ismoney.co.com.com or download the app.
0:36.4	E. Toro is a social network. No, E. Toro is a social network.
0:38.4	No, EToro is an investment platform.
0:42.9	It's both.
0:44.4	That's social investing.
0:46.5	In other words, it's where millions of people invest in stocks, share ideas, strategies and beyond.
0:53.8	E. Toro, the power of social investing.
0:59.0	Download E. Toro today from the App Store or Google Play.
1:02.6	Your capital is at risk.
1:06.1	The first, the tax year is quickly coming to an end.
1:10.2	Calls to sort out our finances are at fever
1:12.6	pitch as we are urged to use it or lose it, our tax-free allowance that is. But should you put
1:18.7	your money in a pension or an ISA? And then if it's an ISA, should it be a cash one, an investment
1:23.5	one, a lifetime Isa one? Simon, you've been looking at this. Tell me more. Do you have to pick
1:30.0	one? No, you don't have to just pick one. And I think that for those of us who are personal
	...

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