If you’re a US expat living in the UK, the Roth IRA’s tax-free withdrawals and growth benefits may seem out of reach. But don’t worry – the UK financial landscape is full of robust alternatives.

The uk equivalent of roth ira of roth ira is an Individual Savings Account (ISA). It’s a close cousin to the Roth IRA, offering similar tax-efficient savings and investment benefits. You can open a cash ISA, stocks and shares ISA, or Lifetime ISA. These are available to anyone over the age of 18.

Like a 401(k) pension in the US, an ISA allows you to save a percentage of your salary before tax each payday. This is typically automatically deducted from your paycheck and provides immediate tax relief of up to PS20,000 a year (in the 2023-24 tax year). You can also claim higher or additional rate relief on your self-assessment form.

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You can then invest in a wide range of assets within an ISA, including stocks and shares, funds, property and real estate investment trusts (REITs), peer-to-peer lending, and more. You can choose which to invest in based on your needs and risk tolerance. For example, if you want to generate monthly income, consider investing in UK government bonds, known as gilts. They are backed by the UK government and pay a fixed interest rate for a set number of years (or “terms”), with redemption at face value when they mature. They are considered one of the safest investments you can make.