@absmechialofficial: This is the exact order I'd invest my money. Assuming you've already got at least 3 months' expenses saved as an emergency fund. 1) Workplace pension (up to the employer match) If your employer matches up to 5%, contribute enough to get the full match. It's one of the closest things you'll get to free money. 2) Stocks and Shares ISA You can invest up to £20,000 a year. Growth is free from Capital Gains Tax and withdrawals are tax-free. Just make sure the money is actually invested, not left in cash. 3) Increase pension contributions Especially if you're a higher-rate taxpayer or have access to salary sacrifice. You benefit from tax relief, potential NI savings and long-term compounding. 4) General Investment Account This is what I'd use once my ISA allowance is full. You can invest as much as you like and access the money whenever you want. The downside is it doesn't have the same tax benefits as an ISA or pension. Some people switch steps 3 and 4 around. I'd usually work through them in this order.
