Pensions remain a better vehicle than Isas to save for retirement according to research appearing in the latest edition of Which? Magazine.
It found pensions are a more efficient way to save because of the 40 per cent tax breaks they receive.
It shows that £100 a month invested from the age of 40 would give a retirement fund at 65 of £86,000 in a pension, £73,000 in a tracker Isa and £60,000 in an actively managed Isa. The report says Isa funds have to work much harder than pension funds to give the same sort of return over the longer term.