The Lifetime ISA: what you need to know
20th Apr, 2023
Adviser-Hub
Business Toolkit

•    Savers aged between 18 and 40 can open a Lifetime ISA (LISA). The LISA is designed to help people to save not only for a first home, but also for their retirement, without having to prioritise one over the other. The money saved into a LISA may be used towards a deposit on a first home worth up to £450,000 or can be saved until the age of 60 to help fund retirement. 
•    Up to £4,000  of your annual ISA allowance can be saved into a LISA each year by savers between the ages of 18 and 50. 
•    LISA savers will receive a 25% annual government top-up, to a maximum of £1,000 per year. A LISA opened at the age of 18 offers the opportunity for 32 years of saving and bonuses. Saving the annual maximum of £4,000 per year over 32 years could net a total government bonus of £32,000. 
•    LISAs are limited to one per person rather than one per household; therefore, two first-time buyers will both receive the government bonus when they buy a home together. 
•    Any withdrawals made before the age of 60 that are not for the purpose of buying a first home, you will pay a 25% withdrawal penalty on the full amount withdrawn.
•    Although savers can save into a “Help to Buy ISA” and a LISA, they may only use the government bonus from one account to purchase their first home. 

Tags: ISA, LIFETIME ISA, LISA, MEDIUM

Weekly Market Updates

Latest Business News

Keep up to date with financial market notifications & advice to further your business opportunities

 
© 2025, Copyrights Adviser-Hub. All Rights Reserved
Terms & Conditions | Privacy Policy | Modern Slavery statement | Cookie Policy