Cat-mark Isas offer greater savings rates

The FSA believes Cat-marked Isas are a better retirement saving option for basic rate tax payers tha...

The FSA believes Cat-marked Isas are a better retirement saving option for basic rate tax payers than existing personal pensions due to their hefty charges. The introduction of stakeholder pensions, with a 1% charging cap, will also offer better value to those saving for retirement. In a paper released last week the FSA said if there were no differences in charges, basic rate taxpayers would only need to make an extra 7% contribution to the substantially more flexible Cat-standard Isa over a personal pension in order to get the same end product. However, Nigel Stammers, pension strateg...