• Pension is just a pot of money you are saving for your later years, which is invested so it can grow and give you something to live on when you retire. A pension comes with certain juicy tax breaks, and you usually can’t withdraw money until the age of 55. You can join a pension scheme through your workplace, or set up your own such as a SIPP
• ISA stands for individual savings account, which is an account offered by banks, building societies or other providers into which you can save up to £20,000 a year tax-free. Most people don’t pay tax on their savings now anyway thanks to the government’s personal savings allowance, which protects interest of £1,000 a year for basic-rate taxpayers and £500 for higher-rate taxpayers from tax. But ISAs can still be useful if you are lucky enough to exceed this threshold, and can be good for other reasons too.