Solar vs Pension Top-Up

Should I invest in solar or pension?

Solar panels vs pension top-up: PENSION: Tax relief (20-40%) on contributions — excellent. But: locked until age 55 (57 from 2028). Returns: 5-8% average (fund-dependent). Fees: 0.5-1.5%/yr reduce returns. SOLAR PANELS: No tax relief on purchase (but 0% VAT). Returns: 8-15% annually (immediate, from day one). Tax-free savings and export income. Accessible immediately (you benefit every day). Increases property value. VERDICT: both are excellent investments. Pension has better tax treatment upfront. Solar has better returns and immediate access. BEST STRATEGY: maximise employer pension match first (free money), then invest in solar, then top up pension further. A retiree: solar is often better than pension top-up because returns are immediate and the time horizon is shorter.