Pensions still most tax efficient savings option

 


The IFS compared pension savings with buying a house, putting funds into an Individual Savings Account (Isa), and investing in buy-to-let property. The main reason the other options were ‘pipped to the post’ by pensions was that, under auto enrolment, employers have to match employee contributions. As a result workers get a 60% boost to their pension pots, the IFS said. "Since employers rarely make equivalent offers to match employees' contributions to say, an Isa or a house, it makes savings in a pension much more attractive relative to other assets," the report said.

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