From: "silicono2@yahoo.com" 
Newsgroups: uk.finance
Subject: retirement, SIPP and ISA
Date: 28 Aug 2006 13:03:56 -0700
   posting-account=Q25TZQwAAAA7jQToTl8BZl2oPPyRRusy

Just started working and need to get straight some stuff about saving
for eventual retirement,
Besides the basic state pension, it appears to be required to also have
a second source of savings for retirements--it can be a second state
pension, company scheme or a private pension plan--my choice is the
latter, more precisely SIPP. Are you allowed to put your pension
savings in an ISA instead of an SIPP?
I understand that either an ISA or an SIPP will let you manage your own
investments if you wish, and they differ mainly in how they're treated
for taxation. Am I correct that:

-with an SIPP, the *total* sum will be taxed (at your rate when you
retire) when you draw on it for your pension, and 25% of it will be tax
free?

-with an ISA, all money paid in will already have been taxed at your
current income tax rate; and all interest earned on that sum afterwards
are tax free?

I think I just got it clear but I'm not sure. In any case if it's
required to have an SIPP that means I must save at least some in an
SIPP? Otherwise to me an ISA seems simpler.

Seb