Free Calculator

ISA, Pension or LISA — which is right for you?

Enter your details and get a personalised ranked recommendation — with the maths behind it, not just a generic answer.

Updates as you type
UK tax year 2025/26
No login needed
Free forever
1
Your situation
Employment status
Annual gross income
Your salary before tax. Use 0 if not currently earning.
£
per year
Age
32
1875+
2
Your goals
Primary goal for this money
How much can you save monthly?
£
per month
Time horizon
20 yrs
1 yr40 yrs
3
Pension details
Do you have a workplace pension?
Your employer contributes on top of your salary
Employer match
How much does your employer contribute? (most common: 3–5%)
5%
0%20%
Your current contribution
5%
0%30%
Are you maximising the employer match?
Contributing enough to get all employer contributions
4
Other factors
First-time buyer?
Never owned a home in the UK
Likely to need this money before age 57?
Pension funds are locked until minimum pension age
Already have an emergency fund?
3+ months of essential expenses in easy-access cash
Your personalised recommendation
Live
Key numbers
Ardlight insight
Enter your details to see your personalised insight.

This calculator is for educational purposes only and does not constitute financial advice. Tax rules and allowances are based on 2025/26 UK tax year. Always verify current limits at gov.uk.

Common questions

What's the difference between a pension and an ISA?
A pension gives you tax relief on contributions — meaning money goes in before tax, so a basic rate taxpayer paying in £80 gets £100 in the pension. But it's locked until age 57. An ISA takes money after tax, but all growth and withdrawals are completely tax-free and accessible any time. Most long-term plans use both.
Should I max my pension or ISA first?
For most people: first, claim your full employer pension match (it's an instant 50–100% return — nothing beats it). Then clear high-interest debt. Then choose between pension and ISA based on your tax band and whether you need flexibility. Higher rate taxpayers (earning £50,270+) usually benefit more from pensions due to 40% tax relief. Basic rate taxpayers often prefer the ISA's flexibility.
Who should open a Lifetime ISA (LISA)?
A LISA is most powerful for two groups: first-time buyers saving for a home (up to £450,000 purchase price) who want the 25% government bonus, and self-employed people under 40 who don't have an employer pension and want a pension alternative. The 25% withdrawal penalty on non-qualifying withdrawals makes it unsuitable as a flexible fund.
What are the annual contribution limits for 2025/26?
ISA: £20,000 per year (total across all ISAs). Pension: up to 100% of your earnings or £60,000 (whichever is lower) including employer contributions. LISA: £4,000 per year (counts toward your £20,000 ISA allowance). The LISA bonus is £1,000 per year maximum (25% of £4,000).
Can I have an ISA and a pension at the same time?
Yes — and most well-structured financial plans use both. They serve different purposes: your pension is tax-efficient and designed for retirement income, while your ISA is a flexible, tax-free pot you can access at any time. Having both gives you flexibility in retirement to manage your tax position.
What happens to my ISA if I die?
Your ISA passes to your estate and forms part of your estate for inheritance tax purposes. If you're married or in a civil partnership, your spouse can inherit your ISA allowance via an Additional Permitted Subscription (APS). Pensions, by contrast, are typically outside your estate for IHT purposes — making them an important estate planning tool.