Millions of investors in their 50s and 60s could be thousands of pounds better off prioritising pensions over ISAs as the end of the tax year looms on April 5.
Latest figures show 3.56million people aged between 55-64 have ISAs worth an average of £35,337.
While money can normally be taken from ISAs at any time, flexible pension rules mean investors can access pensions from 55-years-old (57 from 2028) taking the money as lump sums if they wish.
And the impact of pension tax relief means returns could be boosted by up to 41.7% for higher rate taxpayers and 25% for basic rate taxpayers.
Higher rate taxpayer example:
Over 55 with £6,000 to invest
Higher rate tax payer with earnings of £60,270
Plans to invest for five years
Assumes no growth and no charges
