Lifetime ISA

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.

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.

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.

If you are planning your own retirement savings on top of any workplace scheme you might have, then trying to choose between the many different options could leave you confused and frazzled.

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.