Compare the same monthly take-home outlay routed to a pension (with tax relief and employer match) versus an ISA, and see which leaves you more to spend.
Pension (spendable)
£196,348
After retirement tax + 25% tax-free
ISA (tax-free)
£138,599
The pension comes out ahead by £57,749 here.
Your £200/mo of take-home becomes £333/mo gross in the pension once tax relief is added.
Trade-off to remember: the pension's edge is bought with locked-up access until pension age, while the ISA stays flexible. This model assumes a 25% tax-free pension lump sum and the tax bands you selected.
This is an educational illustration using the figures and assumptions you enter — not financial advice, a forecast, or a recommendation. Real returns vary and are never guaranteed. Always do your own research and consider professional advice before making financial decisions.
The free lessons behind this calculator: