ISA, pension or taxable
Put the same amount of pay before tax into each option and see how much you keep after tax at the end.
Most you keep after tax
£368,608
Pension comes out ahead after 20 years: £21,683 more than the stocks & shares isa and £45,339 more than the taxable account.
Coloured bar is what you keep. The hatched part is tax paid when you take the money out.
Show as a table
| Invested a year | Pot at the end | Tax on the way | Tax at the end | You keep | |
|---|---|---|---|---|---|
| Stocks & Shares ISA | £9,600 | £346,925 | £0 | £0 | £346,925 |
| Pension | £12,000 | £433,656 | £0 | £65,048 | £368,608 |
| Taxable account | £9,600 | £340,210 | £5,024 | £16,941 | £323,269 |
- The same pay before tax goes into each option every year, invested monthly.
- The pension is withdrawn in one go. Taking it over several years in lower tax bands could cost less tax.
- The taxable account pays tax on dividends each year above the £500 allowance, and capital gains tax on the sale above £3,000.
- National Insurance, employer contributions, platform fees and the pension access age are ignored. Rates are 2026/27 and assumed to stay the same.