ISA vs Pension Calculator
Compare how your money grows in a Stocks and Shares ISA versus a pension. Both are tax-efficient, but the tax relief mechanics are very different. This calculator helps you see which gives you more at the end.
ISA Value
£260,463.33
Withdraw tax-free anytime
Pension (after tax on withdrawal)
£276,742.29
25% tax-free, rest taxed at basic rate
Detailed Comparison
| ISA | Pension | |
|---|---|---|
| Your monthly cost | £500.00 | £500.00 |
| Gross monthly invested | £500.00 | £625.00 |
| Total contributed | £120,000.00 | £120,000.00 |
| Final pot value | £260,463.33 | £325,579.16 |
| Tax-free withdrawal | £260,463.33 | £81,394.79 |
| Tax on withdrawal | £0.00 | £48,836.87 |
| Net amount received | £260,463.33 | £276,742.29 |
ISA vs Pension: Key Differences
An ISA uses post-tax money. Growth and withdrawals are completely tax-free, and you can access it anytime. The annual allowance is £20,000 for 2025/26.
A pension gets tax relief on contributions (the government adds back the tax you paid). But you cannot access it until age 57 (from 2028). 25% is tax-free; the rest is taxed as income when you withdraw. For higher-rate taxpayers, the upfront relief is very powerful.
This comparison assumes you pay basic rate tax in retirement. If you pay higher rate, the pension after-tax value would be lower.
Last updated: May 2026. Uses 2025/26 tax rates.
Built by The NexoraOS Team