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Saving for the future is important. Regardless of who you are you need to have some cash put aside to deal with life’s emergencies. There are several ways to do this. Below are details of some of the most tax-efficient ways to save if you live in the UK.

Individual Savings Accounts(ISAs) are for everyone

Regardless of your age, it is possible to save using ISAs. In 1999, the UK government set up the ISA system as a way of encouraging people to save more.  There are now seven different ISA products you could use to grow your savings in a tax-free environment. I found out more about this tax-free savings vehicle online, so you can too.

If you want to diversify the way you save ISAs can be a good way to do it. You can potentially put some money into an instant access cash ISA and some into a stocks and shares ISA. 

You can also open junior ISAs for your children. But, you need to bear in mind the fact that the cash in those accounts cannot be accessed until they are 18. So, it is not available to help you to deal with any financial emergencies.

Grow your pension

Growing your pension pot is also a tax-efficient way to save some of what you earn for the future. However, you need to bear in mind that the funds that are tied up in your pension pot cannot be accessed and used to pay for a financial emergency. 

At the time of my writing this, you get some of the tax back on the money you put into your pension. In addition, the gains you make from investing that money are also tax-free, for the most part. How much of your tax you get back depends on your tax bracket and the type of pension you are contributing to. 

You need to take your time when deciding how to invest in your pension. It is quite a complex subject, so you will need to do a lot of research before taking the plunge.

Venture capital schemes

If you want to invest in businesses you can do so. Angel investment clubs and other agencies can be used if you do not have a huge pot of money available to invest. But, it is very important to understand that these are a relatively high-risk way to invest. If the business you are investing in fails, you could potentially lose all of your capital. But, if things go well you could make more money than you would have made had you simply saved or investing in stocks and shares.

You can find out more about these schemes by looking up Enterprise Investment Schemes (EISs), Seed Enterprise Investment Scheme (SEISs) and Venture Capital Trusts (VCTs). There is plenty of information about these investment vehicles available online.

Get more advice before jumping in

All of the above savings and investment vehicles are viable options. But, you have to do your research before deciding which you use. Just make sure that the advice you use has been provided by a truly independent financial advisor. You can find out how to find one, by reading this.

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