is it better to save in an isa or a pension
Tax implications. With pensions you get tax relief up front on contributions so a contribution of Â£100 becomes Â£125 in your pension-and higher-rate tax payers can claim higher relief. As growth is on the higher sum, this gives pensions an important advantage, as there is no tax relief available on payments into an ISA.he popularity of ISAs has continued in recent years as more and more people take advantage of tax-efficient savings. Over the same time period many people have called into question the value of pensions, causing some to ask whether an ISA is actually a better bet when it comes to retirement saving.