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  3. Pension vs ISA

Pension vs ISA Calculator

Compare the same monthly take-home outlay routed to a pension (with tax relief and employer match) versus an ISA, and see which leaves you more to spend.

Pension (spendable)

£196,348

After retirement tax + 25% tax-free

ISA (tax-free)

£138,599

The pension comes out ahead by £57,749 here.

Your £200/mo of take-home becomes £333/mo gross in the pension once tax relief is added.

Trade-off to remember: the pension's edge is bought with locked-up access until pension age, while the ISA stays flexible. This model assumes a 25% tax-free pension lump sum and the tax bands you selected.

This is an educational illustration using the figures and assumptions you enter — not financial advice, a forecast, or a recommendation. Real returns vary and are never guaranteed. Always do your own research and consider professional advice before making financial decisions.

Learn the concept

The free lessons behind this calculator:

  • ISA vs Pension
  • Pensions & Auto-Enrolment
  • Tax-Efficient Investing
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