Pensions can be accessed from age 55 and the tax relief can magnify returns. Everyone can get a minimum of 20pc tax relief on pension contributions until April 2024, when the rate drops to 19pc. Higher-rate payers can still claim up to 40pc today.

Pensions have always offered the additional advantage of tax relief compared to Isas, but the future change in rates of income tax has shone a brighter light on the disparity. Isas are beneficial because the savings can always be accessed, however, those over the age of 55 do not face pension restrictions.

For example, a higher-rate taxpayer who puts £8,000 into their pension will receive an automatic 20pc tax relief top-up of £2,000 creating a fund of £10,000. They can then reclaim another £2,000 from HMRC via a tax return, making the net cost to them £6,000. 

They can then access the same amount from the pot after the age of 55 and pay basic-rate income tax at 19pc after 2024, leaving them with £8,575. This is just £75 more than they would have after tax by drawing the same amount from the pension today, but £2,575 more than they would have putting the £6,000 into their Isa, as Isa savings do not benefit from the same treatment (as the table above shows).

This assumes no change in value of the Isa or pension investments. Even those who do not pay tax can still claim the tax relief. 

Someone earning £7,500 a year, which is less than the £12,570 threshold for income tax, can still claim 20pc to top up a £6,000 pension contribution to £7,500 and will then have no tax to pay when they draw the same amount after 2024.