Robert Cochran, Retirement Expert at Scottish Widows, reflects on the benefits of developing a savings strategy and planning for the future using a balanced approach of a mix of pensions and ISAs, to provide both tax efficiency and the flexibility to meet both short and long-term financial goals.

Both ISAs and pensions are popular - 12.7 million people had private pensions in 2023/2024, and 26% adults intend to open an ISA this tax year.

ISAs offer valuable tax benefits and flexibility, but for most people, maximising workplace pension contributions should be the first step in any savings strategy, say Scottish Widows. The combination of employer contributions and tax relief makes pensions an incredibly powerful tool for long-term saving. 

Robert Cochran, Retirement Expert at Scottish Widows commented:

For most individuals, a balanced approach combining pensions and ISAs offers the most effective savings plan. Start by prioritising your workplace pension to maximise employer matching and tax relief, laying a solid foundation for your retirement. Then, use ISAs to build an emergency fund and save for shorter-term goals, providing flexibility and security. As your financial situation improves, consider increasing your pension contributions, especially if you're a higher-rate taxpayer, and explore Stocks and Shares ISAs for long-term growth potential. This combined approach utilises the tax advantages and flexibility of both pensions and ISAs.

Full press release: Pensions vs ISAs: Maximising your savings

Media contacts

Teamspirit – Teamspirit@scottishwidows.co.uk 

Scottish Widows – pressoffice@scottishwidows.co.uk