Interesting points, I bet Kronas is more confused now
To sum up a bit - for my own benefit as much as Kronas'
don't go to a bank for financial advice, they can only sell their own products. I'm not sure if dellwear, made that clear
- go for an independent advisor, but check they don't charge a fee for a consultation.
At Kronas' age with no dependents, life Insurance is not a priority.
That leaves the choice between a pension & some kind of alternative savings scheme.
ok, at this point it gets more difficult
- as has been pointed out a private pension qualifies for tax relief on the contributions. The contributions are used to subscribe to a fund which theoretically grows in value and at the end can have one third withdrawn as a tax free lump sum. The remaining 2 thirds
must be used to buy an annuity, which is what funds the actual pension payments - these payments are liable for tax.
- an ISA is a savings account that allows you to pay into an account which accrues interest that is not liable for taxation. There is no tax liability for cashing it in, either.
To be honest, I would be swayed by the ISA route, if I was 18, the points made about flexibility in respect of needing money for major milestones like house purchase etc are very relevant.
That decision would be even more compelling if a company pension option was available - as I see it, the ideal combination is a company pension scheme combined with an ISA - especially if, like mine, the company pension also offers a 'death in service' benefit.
I agree You are being very sensible in thinking about it now, kronas, but take your time & weigh up all your options, before deciding what is best for YOU
<edit> I hadn't seen Grahams info about B&B 'marketplace', when I posted, that looks good