ISA vs pension calculator
Compare the gross investment value of saving into an ISA versus a pension at retirement.
| Stocks & Shares ISA | Pension | |
|---|---|---|
| Monthly contribution | £500 | £500 |
| Tax relief added | None | £125 |
| Gross monthly invested | £500 | £625 |
| Total paid in | £150,000 | £187,500 |
| Tax on growth | None | None |
| Tax on withdrawal | None | Depends on income |
| Gross pot at retirement | £357,539 | £446,924 |
The pension contribution is grossed up by basic rate tax relief (20%) added at source by the provider — so a £500 net contribution becomes £625 in the pension. Higher and additional rate taxpayers can claim further relief via self-assessment, but this does not increase the pension pot itself. The pension figure shown is the gross value before any tax is applied on withdrawal. Depending on how and when you access your pension, a portion may be subject to income tax. The ISA figure shown is the value after all applicable taxes, as ISA withdrawals are always free of tax. These figures are not directly comparable on a like-for-like basis — please seek professional financial advice to understand the after-tax position relevant to your circumstances. The growth rate used is an assumption for illustrative purposes only and does not represent a guaranteed return. Actual investment returns will vary and may be lower or higher than assumed. The value of investments can fall as well as rise. Your actual outcome will be affected by investment performance, the charges applicable to your investments, inflation and your personal tax position. Past performance is not a reliable indicator of future results.