Stock markets, over time, have historically shown to produce strong investment growth. In the USA, for instance, the S&P 500 index has risen from 264.53 in January 1928 to 3,714.24 in January 2021. Its average annual return, therefore, has been about 8%–11% since inception.
There are at least two ways to control your investment growth – the fees you pay, and taxes. For the latter, two investment vehicles are popular for retirement planning – pensions and ISAs (i.e. individual savings accounts). Which is better for mitigating unnecessary tax and enjoying more of your hard-earned savings in later life?
The COVID-19 pandemic has had many consequences. One of them is a spike in public debt as the UK government rolled out costly support measures such as the Job Retention Scheme (i.e. “furlough”), cash grants for struggling businesses and deferred VAT payments. Whilst arguably necessary, these measures have led to record government borrowing which totalled £2.1tn in December 2020, equivalent to 99.5% of the UK’s GDP (gross domestic product).