Thankfully, Chancellor Rachel Reeves confirmed there would be no cuts to the cash ISA allowance in the Spring Forecast which was delivered on 26th March 2025. This is good news as millions of people are being dragged into paying more tax due to frozen personal tax allowances, and higher interest rates.  

That said, just because nothing is changing now doesn’t mean changes won’t come later. So, if you haven’t maxed out your £20,000 annual ISA allowance, now’s the time to take full advantage while you still can.

The tax squeeze has been building for years. Back in March 2021, then-Chancellor Rishi Sunak announced a freeze on personal tax allowances until 2025/26. That freeze was later extended to 2027/28, meaning more and more people are paying tax for the first time—or finding themselves in a higher tax bracket.

The Personal Allowance—the amount you can earn before paying income tax—has been stuck at £12,570 since April 2021, despite rising wages. On top of that, the thresholds for basic, higher, and additional rate tax have also remained frozen. In fact, the 45% additional tax rate now kicks in at an income threshold of £125,140, down from £150,000 previously, so more people are being caught in the highest tax band.

HMRC data shows the impact: in 2024-25, there are an estimated 37.4 million income taxpayers—up from 33 million when the freeze first hit in 2021-22. That includes three million more people now paying higher-rate tax and 400,000 pushed into the top tax bracket.

Savers aren’t escaping the pain either. The Personal Savings Allowance (PSA) has been frozen since it was introduced in 2016. That might not have been a big deal when interest rates were low, but with rates climbing, more people are hitting their PSA limits with far smaller deposits.

Basic-rate taxpayers can still earn £1,000 in savings interest tax-free, but higher-rate taxpayers only get £500, and additional-rate taxpayers get nothing. That means a lot of savers are now facing unexpected tax bills on their interest earnings, especially if they’ve been pushed into a higher tax bracket.

This is why ISAs remain such a valuable tool. Any interest earned within an ISA stays completely tax-free, regardless of the amount, making them a great way to shelter your savings from the taxman.

If you haven’t maxed out your ISA allowance yet, now’s the time to act. There are less than two weeks left to use this year’s allowance, and once it’s gone, it’s gone. And why not get ahead by using next year’s allowance as soon as possible? The sooner you do, the more tax-free interest you can earn.

And don’t neglect your old ISA accounts. Remember that transferring an existing ISA from a previous tax year will not affect your current tax year allowance, so you may as well make sure you are making your older savings work as hard as any new cash you are depositing.  

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office. 

Following the government’s Spring Statement on Wednesday 26th March 2025, National Savings & Investments (NS&I) published its unaudited results for the third quarter of the 2024-25 financial year (that’s October to December 2024) and the numbers are pretty interesting.

So far this tax year, NS&I has pulled in a net £8.9 billion - £5.5 billion in the last quarter alone. The net amount is the difference between all the money coming in from deposits, interest, and customers rolling over their savings – and all the money going out through withdrawals and Premium Bonds prize payouts. For the whole year, the latest forecast suggests NS&I will land at around £10.5 billion, which is within their target range of £9 billion, plus or minus £4 billion.

The fact that it is on to slightly exceed its target could be the reason NS&I has made a series of interest rate reductions to some of its savings accounts recently. However, they are citing the recent base rate reductions as the key reason and NS&I does also have to strike a balance between raising what it needs to, keeping savers happy whilst ensuring good value for taxpayers, and not disrupting the wider financial services market too much.
But what about next year? Well, the government has set a new Net Financing Target for 2025-26, and it’s going up – to £12 billion, again with a leeway of plus or minus £4 billion.

That means NS&I may need to bring in more money, which raises a big question: could this mean we see interest rates on their savings accounts go up again?

Of course, nothing is certain. NS&I carefully adjusts its offerings depending on economic conditions, government borrowing needs, and, let’s be honest, how much money they’re already attracting. But if they do need to bring in more savers, improving rates is the way to do it.

NS&I is a National Treasure – so many savers stay put come what may. And if you have very large sums of money, the fact that all cash held with NS&I is protected by HM Treasury means that you don’t have to go through the hassle of opening multiple accounts in order to keep your cash protected by the Financial Services Compensation Scheme (FSCS) which offers protection on funds up to £85,000 per banking licence.

But, as a result, NS&I generally doesn’t offer the best rates as the tables below show.

Rates correct as at 28/03/25

So, for those who want to earn more interest whilst keeping the hassle of opening multiple savings accounts to a minimum, perhaps a cash platform could be the answer!
Imagine a cash savings platform as a marketplace for savings, where a single application and login gives you access to a range of competitive savings accounts—from easy access to fixed-term bonds—across multiple providers with just a few clicks.

While not whole of market, these platforms often feature attractive and even market-leading and exclusive rates. The key advantage is the ease of spreading your savings across different accounts; maximising protection under the Financial Services Compensation Scheme (FSCS) while optimising your returns.

With our Savers Hub, powered by Insignis, you can now open, manage, and switch between multiple competitive savings accounts—all from one convenient login.

Request an illustration today, to see how much interest you could be enjoying. There’s no obligation, so the only thing you are missing out on is the possibility of more interest!

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.

The Chancellor previously confirmed that she only wanted to make major tax and spending announcements once a year, with this being in the Autumn Budget.  Therefore, no tax changes were expected and none were delivered.

The headline from the speech was that the Office for Budget Responsibility (OBR) has halved its 2025 growth estimate for the UK from 2% to 1% in 2025, but it has upgraded its longer term forecasts from 2026 onwards.

Alongside this, previously announced cuts to Welfare and Overseas Aid payments, Increases in Defence spending and Planning Reforms were confirmed.

In terms of signposting future changes that could be announced:

• The government confirmed it is looking at options to reform ISAs to “get the balance right between cash and equities to earn better returns for savers” which could indicate limited cash ISA allowances relative to Stocks and Shares ISA allowances.
• The government will also be holding a series of roundtables with key stakeholders over April as it considers the role of tax reliefs for Enterprise Management Incentives Schemes, Enterprise Investment Schemes and Venture Capital Trusts.

After the pension changes over the last few years and, in particular, last year’s confusion as the new pension rules were ‘bedded in’ and legislation adjusted, it was a relief to have no further tinkering with pension rules.

We already know of course, of various areas of impending change, including the removal of the ‘domicile’ tax regime from 6 April this year, the Business Property Relief and Agricultural Property Relief changes from April 2026 and of course the Pensions and IHT changes from April 2027 – which we await further details on.

These areas and others, including the employer National Insurance increases, are covered off in our Autumn Statement 2024 summary.

There were some changes announced to Universal Credit from 2026 onwards and from this summer it will become possible for those newly liable for the High Income Child Benefit Charge to pay the tax through PAYE rather than via self-assessment.

If you’d like to discuss any of the announcements from the Spring Statement or Autumn Budget last October, and are concerned about how they will affect your financial plan, why not get in touch and speak to one of our expert advisers.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate tax advice.

In its annual update to the ‘basket of goods and services’ used to monitor inflation price growth, the Office for National Statistics (ONS) added 23 new items and removed 15 to the list of over 700 that reflect typical consumer spending habits, with some additions that may come as a surprise.

Opening the basket of goods

Among the new additions to the basket were virtual reality (VR) headsets, pre-cooked pulled pork, yoga mats, noodles and mangos, while newspaper adverts, oven-ready gammon joints, in-store cafeteria meals and DVD rentals were removed.

As a surprise to some, men’s sliders/pool sandals also made their way into the basket. A sure-fire sign of the times!

Stephen Burgess, ONS Deputy Director for Prices, said the addition of VR headsets to the inflation basket pointed to Britons’ “appetite for emerging technology, while the loss of printed newspaper adverts demonstrates a continuing shift towards the online world.”

Burgess explained the addition of the yoga mats: “Yoga mats also limber up as a new addition due to their increased popularity since the pandemic."

As for the men’s sliders, we still aren’t entirely sure!

How is the basket of goods calculated

In order to calculate an inflation figure, the ONS tracks the prices of hundreds of everyday items and compiles them into one figure. This combination of all the different items and their prices is called the ‘basket of goods’. The basket is constantly updated and adjusted depending on the economic context, and different weightings within the basket are given to different areas of spending in the economy.

Each month the ONS releases a new inflation figure which shows how much the combined prices of items in the ‘basket of goods’ has risen since the same time last year.

The basket currently contains 752 items. The ONS collects the costs of these products and services across many different retailers to come up with the monthly inflation figures.

But what is added or removed each time also gives us a fascinating insight into our changing tastes, trends and lifestyles. For example, wild rabbit was one item included in the first list of 1947. Tea bags only made it in by 1980. It is essentially a reflection of our collective consumer habits in the UK.

Understanding how inflation can impact on your financial plan is key, so if you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation to find out how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.

The financial support provided by parents and grandparents has long played a role in family life, but in recent years, it has become a defining force in the broader economy. Dubbed the ‘Bank of Mum and Dad’, this intergenerational flow of wealth is increasingly crucial in helping younger people buy their first homes, fund their education, and establish financial security.

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As house prices have surged far beyond wage growth, saving for a deposit has become an uphill battle for many. The average first-time buyer in the UK now needs around £60,000 for a deposit, a sum that would take years to accumulate without external support. Faced with this reality, nearly half of young homebuyers now rely on financial help from family to get onto the property ladder. This trend is even more pronounced in high-cost areas such as London and the South East, where deposits often exceed £100,000. Without parental contributions, home ownership is increasingly out of reach for those without inherited wealth.

A similar pattern is evident in higher education, where rising tuition fees and the high cost of living mean many students graduate with substantial debt. While some rely on student loans, others benefit from parents who cover their fees or living expenses outright. This financial head start can have long-term advantages, allowing some graduates to begin their careers unburdened by debt, while others face years of repayments that delay their ability to save, invest, or buy property.

What does this mean for society?

Beyond individual families, the ‘Bank of Mum and Dad’ has wider economic implications. As wealth is increasingly passed down through gifting, it alters patterns of financial security and social mobility. Those who receive help from their parents enjoy an advantage not only in property ownership but in long-term financial stability, while those without such support find it harder to build wealth. 
Research from the Institute for Fiscal Studies confirms that parental earnings are now a stronger predictor of young people’s future income than in previous generations, reinforcing economic divides.

The 7-year rule in inheritance tax

For wealthier families, gifting money to children can also serve a strategic purpose. Under current UK tax laws, financial gifts made more than seven years before the giver’s death typically fall outside of inheritance tax calculations. This means that parents and grandparents who transfer wealth earlier can help reduce the potential tax burden on their estate while providing meaningful support at a time when it is most needed. Given that inheritance tax is charged at 40% on estates above the £325,000 threshold known as the nil rate band (or £500,000 when passing a main residence to a direct descendant, known as the residence nil rate band), careful legacy planning can result in substantial savings.

However, parental generosity is not without its risks. As life expectancy increases and retirement lasts longer, many parents must balance their desire to support their children with their own financial security. Rising care costs and later-life expenses mean that some retirees could deplete their savings too quickly, potentially leaving them reliant on state support or requiring assistance from their own children in later years. A survey by Aegon suggests that over half of UK adults anticipate financially supporting their parents as they age, illustrating how wealth flows between generations in complex and often unpredictable ways.

The future of the ‘Bank of Mum and Dad’

Despite concerns about retirement preparedness, the influence of the ‘Bank of Mum and Dad’ is unlikely to diminish soon. Housebuilding targets remain unmet, real wages have not kept pace with property prices, and the need for financial support among younger generations shows no signs of easing. As a result, families will continue to navigate the challenges of intergenerational wealth transfers, seeking to strike a balance between supporting their children and securing their own financial futures.

For those considering passing on wealth, early planning is key. Seeking professional financial advice can help families structure gifts and inheritance in the most tax-efficient way, ensuring that wealth is preserved and maximised for future generations. As economic trends continue to shift, the role of the ‘Bank of Mum and Dad’ is, for the near future at least, here to stay.

If you’re looking for advice on the best way to support your loved ones, why not get in touch for a free initial consultation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice.

Last month, on February 6th, we saw a 0.25% cut to the Bank of England base rate.

Savings rates are proving resilient!

Normally, that’s bad news for savers since interest rates on savings accounts tend to follow suit. But so far this year, the best savings rates have held up surprisingly well. In fact, many accounts are not only offering rates higher than the current base rate of 4.50% but also keeping pace with the rising cost of living (inflation), which currently stands at 3%.

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So what does this mean for savers?

Well, it might not be as bad as you think!

The fact is that some of the longer-term bonds and ISAs are actually paying higher rates now, compared to the beginning of the year.

Back in early January, the best 5-year bond available paid 4.50% AER, but today, JN Bank, Birmingham Bank and Close Brothers Savings are all offering 4.55% AER. Similarly, the top 5-year cash ISA rate has risen from 4.18% at the start of the year to 4.30% now.

One of the key reasons for this is inflation, which remains stubbornly above the Bank of England’s 2% target. As a result, interest rates are expected to stay higher for longer than previously anticipated. Good news for savers!

Even some of the top variable rates, whilst a little lower than they were in January have not fallen by as much as the cut in the base rate. At the start of the year the best unrestricted easy access account, offered by Gatehouse Bank, paid 4.75%. Today, GB Bank is offering 4.60% AER. And that Gatehouse Bank account, although it has since been withdrawn from sale, those who opened it before it was closed are still benefiting from that 4.75% rate.

For those who can limit their withdrawals, even better rates are available. Monument Bank’s Limited Access Saver pays 4.75% AER, allowing three penalty-free withdrawals per year—though you’ll need at least £25,000 to open the account. If you have a smaller balance, Vida Savings Defined Access Issue 1 offers 4.65% AER, allowing four penalty-free withdrawals a year. Any additional withdrawals will see the rate drop to 2.50% for the rest of the year.

Cash ISAs continue to provide a valuable tax-free savings option. There’s been speculation that the cash ISA allowance could be reduced—or even scrapped altogether. However, despite the ongoing debate, it has been reported that Chancellor Rachel Reeves has confirmed there will be no changes to cash ISA rules in the upcoming Spring Forecast on March 26th – but that doesn’t mean the cash ISA allowance is safe!

The key takeaway? Savers still have plenty of opportunities to make their money work harder. It’s worth checking what you’re currently earning and switching if you can get a better deal. And if you can afford to lock away some of your savings, you could protect yourself from further rate cuts while keeping up with inflation.

Take a look at our unbiased and whole of market best buy tables to see if you could do better!

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Investment returns are not guaranteed, and you may get back less than you originally invested. 

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate tax advice.

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If you’d like to discover why The Private Office continues to be top-rated, we’d love to hear from you. Get in touch today! 

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Question: I love cash ISAs and hope they stick around. I’ll be receiving a lump sum soon and want to put some of it into next year’s £20,000 ISA allowance. I prefer cash ISAs but need some flexibility since my rental income isn’t always steady. Can I split my funds between a fixed-rate ISA and an easy access ISA as there are times that my properties are empty, so I might need access to some cash? 

I’m a fan of cash ISAs too! So, I’m worried that there’s been a lot of speculation recently that the cash ISA allowance is to be either scrapped or at the very least restricted – some are saying to as little as £4,000 a year. With cash ISAs remaining as one of the best ways to earn tax-free interest for savers, I hope that these rumours won’t come to fruition, but we’ll just have to wait and see.

Now, onto your question. Thanks to rule changes in April 2024, you should now be able to split your £20,000 ISA allowance into several cash ISAs within the same tax year. That means you could open both a fixed-rate cash ISA and an easy-access cash ISA, as long as you don’t exceed your total annual allowance. However, it might not be as simple as you’d hope!

A fixed-rate ISA usually offers a better interest rate in return for locking your money away for the chosen term — ideal if you don’t need access to those funds for a while. Plus, it protects you from any future rate cuts that may happen. In contrast, an easy-access ISA gives you the flexibility to withdraw funds if you need them for rental gaps or unexpected expenses, although the interest rate is variable and could be cut if interest rates fall over time, as is expected.

However, while the updated rules now allow this mix-and-match approach, not all providers have adopted them in practice.

Before the 2024 rule change, you could only pay into one of each ISA type per tax year—so, for example, one cash ISA and one stocks and shares ISA. There was an exception called the ‘portfolio ISA’ rule, which allowed multiple cash ISAs with the same provider in a single tax year, but only a handful of providers, such as Paragon, Aldermore, Charter Savings Bank, Nationwide and Ford Money, offered this option.

With the new rules, you might assume you can now open multiple cash ISAs with different providers or the same provider within a single tax year. But here’s the tricky part - ISA providers aren’t required to follow the new rules. Most now allow you to open another cash ISA even if you’ve already funded one with a different provider in the same tax year. However, this doesn’t necessarily mean they allow multiple cash ISAs under one roof.

If you’re after the best rates for both fixed and easy-access ISAs, chances are they won’t be from the same provider anyway. So, to make the most of your allowance; it’s worth picking the best rates available rather than worrying about whether one provider allows multiple ISAs.

And be aware that you should always check the small print on easy-access ISAs. Some have short-term bonuses that boost the rate initially but drop after a few months. Others limit the number of withdrawals you can make before penalties apply.

Another key point - if you expect to dip into your ISA savings, check whether the ISA is flexible. With a flexible ISA, you can withdraw money and put it back within the same tax year without affecting your allowance. If it’s not flexible, any money you take out still counts toward your annual limit when you replace it.

For example, if you put £10,000 into your cash ISAs during the 2024 to 2025 tax year but then take out £3,000, the amount you can put in during the same tax year is £13,000 if your ISA is flexible (the remaining allowance of £10,000 plus the £3,000 you took out). But if your ISA is not flexible, you can add just £10,000 (just the remaining allowance).

Whilst in theory the new rules should make opening ISAs simpler than ever before, the bottom line is that whilst things should be more flexible now, inevitably this isn’t necessarily the case, so you need to ask your existing and potential ISA providers about which of the rules they have adopted or are looking to adopt. 

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate tax advice. 

The accounts mentioned in this article are accurate and correct as at the time of writing.

The fight for the future of the cash ISA continues as one of Britain’s biggest building society has waded into a row over whether the government should cut tax breaks on cash ISA's, arguing such a move would reduce the availability of mortgages for first-time buyers.

As covered in our previous article on the cash ISA threat, Rachel Reeves is being lobbied by City firms to scale back or remove tax breaks on the popular cash ISA's. They are putting pressure on Reeves to make these changes so that more focus is put on the riskier practice of investing in the stock market, which they say would boost economic growth and could deliver higher returns to individuals over the long term, although as with any investment that is not guaranteed.  

Richard Fearon, CEO of Leeds Building Society, criticised the increasing push from certain City brokers and fund managers to cap cash ISAs in an effort to steer savers toward stocks and shares. He warned that lowering the £20,000 annual cash ISA limit would not only be unpopular among customers but could also lead to higher mortgage rates.

“It’s naïve at best, or deliberate misinformation at worst, for fund managers to say money saved in cash ISA's is dormant,” he said. “We use it to fuel our mortgage lending. If you significantly reduce that funding, mortgage rates would become more expensive for borrowers.”

A survey to Leeds Building Society customers last year found that only 7 per cent were interested in opening stocks and shares ISAs in 2024. It’s clear that many people are not interested in the more risky stocks and shares ISA over the more secure cash ISA, despite what big city firms want.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest. They have become more popular over the past two years due to rising interest rates increasing the competitiveness of savings products.  

A stocks and shares ISA is a tax-efficient account that allows you to invest in shares, funds, bonds, and other assets while being sheltered from income and capital gains tax. 

You can save up to £20,000 each tax year and receive tax-free interest payments, so when the value of your ISA increases, you get to keep all of it tax-free*.  

While there is a £20,000 allowance in place for how much you can put in a year, there is not a cap on how much you can accumulate in an ISA over a lifetime.  

When choosing a style of investment to suit your needs, you may want to consider how long you plan to invest for and how much you would like your money to grow. It is also important to understand what movement in value you may or may not be happy with and any potential losses that may happen. That is why getting professional advice can be important for understanding your objectives and options.

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help. 

*Source: Gov.uk

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

Investment returns are not guaranteed, and you may get back less than you originally invested.  Past performance is not a guide to future returns. 

Planning for retirement requires careful consideration of the best savings vehicles available, and two of the most popular options in the UK are pensions and ISAs (Individual Savings Accounts). While both offer tax-efficient ways to grow wealth, they serve different purposes and come with distinct advantages and limitations. A well-rounded retirement strategy may involve using both, depending on individual financial goals, tax considerations, and evolving regulations.

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The role of pensions in retirement planning

Pensions are designed primarily for long-term retirement savings, offering significant tax advantages that make them an attractive option. One of the biggest benefits is the tax relief on contributions—money paid into a pension receives tax relief at an individual’s marginal tax rate, effectively reducing the amount of tax paid on earnings. For higher or additional-rate taxpayers, this makes pensions particularly valuable, as contributions can benefit from 40% or even 45% tax relief, depending on income levels.

Additionally, pensions provide tax-free investment growth, allowing savings to accumulate over time without being eroded by capital gains tax or dividend tax. When it comes to withdrawing funds, 25% of a pension pot can be taken as a tax-free lump sum, while the remaining balance is subject to income tax. The trade-off for these benefits is that pension savings are locked in until at least age 55 (rising to 57 in 2028), making them less accessible in comparison to ISAs.

The flexibility of ISAs

ISAs, on the other hand, offer tax-free growth and withdrawals, making them an excellent complement to pensions in a retirement strategy. While contributions do not receive tax relief, the ability to access funds at any time without penalty makes ISAs more versatile. This flexibility can be particularly useful for those who may need to draw on savings before retirement or wish to supplement their pension income without triggering additional tax liabilities. ISAs have a limit of £20,000 per individual per tax year and this can be split across cash and/or stocks and shares.

Cash ISAs allow savers to earn tax-free interest, while Stocks & Shares ISAs provide the potential for investment growth with no capital gains or dividend tax on returns. This makes ISAs an attractive choice for those who want to retain control over their savings without the restrictions of a pension. However, recent discussions about potential changes to the Cash ISA framework have raised concerns about its long-term benefits, making it all the more important for savers to stay informed about policy updates.

The changing landscape of pensions and inheritance tax

One of the most significant changes being proposed for pensions  is the planned inclusion of pension funds within the scope of inheritance tax (IHT) from 2027. Historically, pensions have been an efficient way to pass wealth down to future generations, as they have typically fallen outside of an individual’s estate for IHT purposes. This has led many financial advisers to recommend using non-pension savings first in retirement, preserving pension wealth to be inherited tax-free.

However, with the proposed new rule changes, pensions may no longer enjoy this exemption, potentially making them less favourable for wealth transfer. This shift may encourage retirees to draw down on their pensions earlier rather than leaving them untouched, making strategic planning even more essential. Individuals should review their estate planning strategies in light of these proposed changes to ensure they optimise tax efficiency while securing their financial future.

Balancing pensions and ISAs for a stronger retirement plan

Given the unique advantages of both pensions and ISAs, a balanced approach can help individuals make the most of their retirement savings. Pensions remain a powerful tool for long-term wealth accumulation due to tax relief and employer contributions, but they have some limitations on access and flexibility and could soon be subject to inheritance tax. ISAs, while not offering tax relief on contributions, provide tax-free growth and withdrawals, making them an excellent complement for early or flexible access to savings – but are limited to £20,000 contribution per tax year.

Younger savers may prioritise pensions to take full advantage of employer contributions and tax relief, ensuring they build a solid foundation for the future. Meanwhile, those approaching retirement may benefit from shifting some focus to ISAs, allowing for accessible savings that can be drawn upon without incurring additional tax burdens. Given the proposed changes to pension inheritance tax, retirees may also need to rethink how they draw down their savings, potentially using pensions earlier than previously advised.

With tax laws and regulations evolving, seeking professional financial advice is crucial to navigating the complexities of retirement planning. A tailored strategy that considers tax efficiency, investment growth, attitude to risk, and changing policies can make a significant difference in long-term financial security. By carefully balancing contributions between pensions and ISAs, individuals can build a more resilient retirement portfolio that aligns with their goals and adapts to the shifting financial landscape.

We’re currently offering anyone with £100,000 or more in pensions, savings or investments  a free initial financial review worth £500. If you’d like to learn more, get in touch for an initial consultation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate tax planning.

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.

The information contained within this article is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.