Once the basics of workplace pensions are understood, the next step in financial planning is not what to invest in, but where to invest.
Different investment vehicles exist for different purposes. Each has its own rules around tax, access, limits, and suitability. Used in the right order, they work together efficiently. Used in the wrong order, they create unnecessary tax, complexity, or risk.
The flowchart sets out a logical investment hierarchy, based on access age, tax efficiency, and purpose.
Different stages of life have different demands. This is a basic framework and does not include everything. Go from the top to the bottom
Each wrapper that is used for the investments has its own unique qualities. The pension and the ISA are the most common and well known. You can deep dive into each wrapper to see what you may need to make use of in your own life.