Whatâ€™s the Trend, ISA or Pension?
Pensions, which were earlier known as the safest investment of a workerâ€™s life, are losing their tag now with more people starting believing savings accounts as a better option for their money.
People are today experiencing that most of the pension products have become confusing or inflexible, following which they have started putting their money into ISAs every month with a view that will serve as a possible and better way of saving for retirement.
"There is more of a demand for the flexibility of ISAsâ€ť, says Bath-based Mr. Patrick Connolly at the financial adviser AWD Chase de Vere. â€śPensions have a fairly negative perceptionâ€ť, he added further.
The same trend has also been confirmed by Mr. Graeme Currie, a financial consultant at Alan Steel Asset Management, who said that people have started moving away from pensions due to the increasing lack of trust among people for their retirement savings.
This fall in personal pensions is being witnessed since the year 2007, confirms the collected data from the Association of British Insurers about ISA contributions becoming more volatile now-a-days. Time is no far when ISA could even come closer to parity with personal pensions. But still, there are many people who despite knowing the facts, are attracted to the showcased attractions of ISAs.