Can I have both an ISA and a workplace pension at the same time?

Full answer

There is no restriction on holding both an ISA and a workplace pension at the same time. In fact, financial advisers commonly recommend using both as complementary savings vehicles. Your ISA allowance of £20,000 per year and your pension Annual Allowance of £60,000 per year are entirely independent limits. Pension contributions receive upfront tax relief boosting the amount that enters the pension, while ISA returns are tax-free on withdrawal with no upfront relief. Workplace pension contributions via salary sacrifice also save National Insurance. A common strategy is to contribute enough to the pension to benefit from employer matching, then use an ISA for additional tax-efficient saving that remains accessible before the minimum pension access age of 57 from 2028. Both types of account shield your money from dividend tax, capital gains tax, and income tax on interest within their respective wrappers.