Most of us will be aware that first-time buyers are getting older, with the average now 34-years-old, compared to just 26-years in 1997. As well as whopping deposits to save for, the under 40s also need to put money aside for retirement, which means that there is a financial mountain to climb.
ISAs are a fantastic vehicle for long-term savings thanks to generous tax-saving features. When saving into an ISA you don’t pay any tax on the money in your account, or any income tax on the interest you earn. However, there are a few rules you should be aware of when using them.
What does LISA stand for? The Lifetime ISA – it’s new. What’s the big appeal? The government will add a 25% bonus to what you invest, up to £1,000 a year on your maximum £4,000 investable allowance until you are 50. Can anyone open a LISA? No, you must be aged 18–39.
For younger people who want to save for their futures, there is now a new kid on the block. The Lifetime ISA (LISA), has been available since April 2017 and comes with the alluring promise of a 25 per cent bonus.