Tax break balancing act

WE ARE into the new financial year and that offers savers a fresh chance to get their money working harder.

- By Harvey Jones

Governments squeeze all they can out of hard-pressed taxpayers, so it pays to max out every tax break you can. Pensions and Isas offer powerful tax advantages, but also pose a tricky question: which should you use first?

Getting the balance right can help you get the most out of your savings, Robert Cochran, retirement expert at Scottish Widows. “Using a mix of pensions and ISAs can provide the best of both worlds, with efficiency and the flexibility to meet both short and long-term financial goals.”

Pensions and ISAs serve different purposes, and the best approach is knowing which to use and when.