Investing term

What is Retirement wrapper?

A tax-advantaged account type dedicated to long-term retirement savings.

A retirement wrapper is a tax-advantaged account type designed for long-term retirement saving — like a 401(k) or IRA in the US, an ISA or SIPP in the UK, and equivalents elsewhere. The wrapper shelters your investments from some tax, dramatically boosting long-run growth. The specific rules vary by country, but using available retirement wrappers is usually a top-priority move.

For example

Holding the same index fund inside a retirement wrapper rather than a taxable account can save years of tax drag, leaving far more at retirement.

Retirement wrapper is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.

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Related terms

Account statementThe monthly or quarterly document summarising your account activity, balances, and realized gains.BrokerThe licensed firm you go through to buy and sell investments on an exchange.Brokerage accountThe account you open at a broker to hold your investments.CommissionThe per-trade fee some brokers charge to execute an order.
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