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Tempted to open a liftime ISA - the 25% bonus from the government feels almost too good to ignore. As I have already bought a home I'd be tied in to age 60 to fund early retirement, with heavy penalty for early withdrawals. What is the likelyhood of the withdrawal age being increased past the current 60?
I've got one. Martin Lewis guide is pretty good and worth a read before making any decision. Its worthwhile if you already have a pension, don't get one instead of a pension.
Don't forget you need to be under 40 year old to get one.
Cheers - I've got a decent workplace pension, but with heavy penalty for taking before state retirement age. Looking to self-fund from 55ish-69 thus the LISA interest to use as part fund.
I've got one with Hargreaves Lansdown. Seemed a bit of a no brainer with the 25% bonus.
Investment is spread over a couple of different funds although they've taken a bit of a battering lately as the stock market has in general.
As above, I have this alongside rather than instead of a pension.
Yep, have one alongside a SIPP. The 'heavy penalty' is only the tax break ('bonus') the Government is giving you, really. If you do well investing then you still get interest which doesn't come under Capital Gains. So it has all the tax benefits of a self invested pension but is accessible if you really, really need it.
Will be opening a S&S LISA pretty soon, just deciding who I set it up with. Like you all have said, can't turn away that free government cash.
the penalty is a bit (5%) more than you get when you put it in, but that seems like a reasonable penalty risk if you're fairly sure you're in it for the long term.
OP : if you're a higher rate tax payer compare the option to that of a private pension - you might find the latter has a better tax benefit
Ooooh, I'm 40 later this year, so I'd better open a LISA I think.
I'd not realised it potentially takes up 4K of your 20k ISA allowance, are people putting cash into CASH ISAs first and then transfering to LISAs or aiming to use up the allowance on the LISA first?
I can see me wanting to split any savings at present beteen a cash or maybe investment ISA (to allow less of a penalty and easier access should I need it to savings) and a LISA that I'd do my damndest to hold off of touching for the next 20 years...