ISA, Lifetime ISA or pension?

Compare the same take-home money invested each way.

Your details

Your result

Likely to leave you with morePension
Value when you need it
Pension, after tax£14,392
ISA, tax-free£10,159
Take-home cost today£3,000
Assumptions and limits

Ignores employer contributions (a big pension advantage), fees, NI saved by salary sacrifice, the 25% tax-free cap and access ages (pension from 57 from 2028; Lifetime ISA from 60 or for a first home, with a 25% charge otherwise). Lifetime ISA bonus is 25% on up to £4,000 a year. Growth is an assumption, not a forecast.

Sources: Income Tax rates · Lifetime ISATax year 2026/27

Common questions

Should I pay into a pension or an ISA first?

If your employer matches pension contributions, that free money usually comes first. An ISA suits money you might need before retirement.

What is a Lifetime ISA?

An ISA you can open between 18 and 39. You can pay in up to £4,000 a year and get a 25% government bonus. It can be used for a first home costing up to £450,000 or from age 60; other withdrawals have a 25% charge.

How we calculate

Every calculator uses the published 2026/27 rates from one shared set of rules, so when a rate changes, it changes everywhere.

Where rates come from

Tax, National Insurance, student loan, benefit and property tax rates come from GOV.UK. Each calculator links to its sources.

What we don’t cover

Scottish income tax bands, tax codes other than 1257L, benefits in kind and your personal circumstances. Results are estimates to help you plan, not a payslip or advice.