Tim Bennett Explains: Which is best - an ISA or a SIPP?

ISAs and SIPPs both offer tax effective ways to save. Tim Bennett compares the key features of both.

[rajaamerkhan]

Best explanation. Very clear and informative. Thank you.

[pooka]

Very clear way to put across the important points and all done while virtual skiing. Well done, now back to the slopes.

[craiganderson]

I have been researching the ISA vs SIPP benefits for a while, this is a great explanation, thank you!

[lindyf]

Brilliant video- Very informative and nicely simplified.

[sianhewist]

This guy is a god send for me studying my Diploma in Regulated Financial Planning!

[boxingfan]

Thank you for the informative videos. Would be great if the subtitles can be made without blocking your presentation.

[davidlloyd]

I have a wrapper, ISA and personal pensions (from NHS and private industry). Retired at 56.

[kynchan]

If you trade UK stocks in the SIPP to make a capital gain but do not contribute or down draw does hmrc need to know the transactions. I have a tax allergy.

[FBK-SL]

I have an NHS pension, I work agency work at times, they are now asking if I want to sign up with an Umbrella company pension scheme, would this be considered a private pension?
Would I be taxed 25% twice with the two different SIPP??

[GH-hewf]

I'm self employed and a higher tax payer, am I right in thinking that in terms of tax efficiency theres really no difference between a SIPP and pension, unless when you withdraw you then become a low tax payer (20% as opposed to 40%). I still think I will use a SIPP to reduce my overall tax bill a year first and then perhaps look into a stock and shares ISA. Additionally with your example you just assumed one has already taken 25% from their SIPP, so actually SIPP's overall are more tax efficient? Thanks :D

[roblittle]

“On the way out”
So am I right in thinking if before retirement you worked 1 year or so to get into the new tax year you would end up getting the lower tax on the SIPP?

[trollface]

is this video for educational purposes only?

[domigedomige]

Hi Tim,

We really enjoyed your video! Just wondering where we could find an ISA that would pay 6%? I might be missing something but I can only ever find ones that pay just over 3%

Also It would be lovely to see a video on the 2015 NHS pension changes and what the best options were to those who seek a slightly early retirement (like me!).

[trevorkeast]

Hi Tim, great video. One question I do have that wasn't really explained is the lifetime allowance on the SIPP. The current lifetime allowance is 1 million. If I have 2 million in my SIPP then what happens to the remaining one million after the lifetime allowance has been exceeded?

[zzhughesd]

So upon retirement just take personal allowance tax free. Draw it down under that. Never pay tax !?