Compare long-term savings

Here are ways you can save for the long term. Compare which ones could work best for you.

	Pension	Stocks & Shares ISAs	Lifetime ISAs	Property
Is it hassle-free to set up and manage?	Yes Unless you want to manage the funds you invest in.	Yes Unless you want to manage the funds you invest in.	Yes Unless you want to manage the funds you invest in.	No You will need to find a property, arrange a mortgage and choose a solicitor.
Is your investment guaranteed?	No As this uses investments, the value is not guaranteed.	No As this uses investments, the value is not guaranteed.	No Even cash is not guaranteed.	No Property values can fall. You may only be able to sell your property for less than you bought it.
Is this free of charge?	No You will pay a yearly management charge. Other charges may apply.	No Your Account may be subject to charges such as management and ongoing fund charges.	No You will pay a yearly management charge and ongoing fund charges. You may be subject to charges such as management and withdrawal charges.	No When you set up a mortgage, you may have to pay an arrangement fee, stamp duty, valuation and legal fees. Some mortgage providers can offer deals on these. So it pays to shop around.
How much can you pay in?	£40,000 Up to 100% of your earnings, subject to a maximum of £40,000 for each tax year.	£20,000 The maximum you can pay in for tax year 2024/2025 (across all types of ISAs). Less any subscriptions made to other permitted types of ISAs, in the current tax year.	£4,000 The maximum you can pay in for tax year 2024/2025 (across all types of ISAs). The remaining allowance can be used in any combination of the other permitted types of ISAs subject to the annual ISA allowance, currently £20,000.	No limits Depends on your mortgage agreement.
Can other individuals pay money in on your behalf and can you benefit from tax relief?	Yes If you’re paying into a company pension, your employer may also pay in as well.	No Any income and growth is free from UK tax.	No Any income and growth is free from UK tax.	No
Can you get tax relief on your payments?	Yes	No	No	No
Can you take your money when you like?	No Usually not until 55. From 6th April 2028, you will need to be 57 to take money from your pension.	Yes	No Withdrawals outside permitted rules may attract charges.	Yes Although you may not be able to sell it quickly
Is all the money you take from it tax-free?	No Normally only 25% of your pension pot can be taken tax-free. The rest is subject to tax.	Yes	Yes	No Tax-free if the property is your main residence and was sold.

Important information

All the long-term saving options involve investments. All investments involve risk. You may get back less than you put in.

The tax depends on your circumstances. Your circumstances and tax rules may change in the future.