The Lifetime ISA, an alternative to the Help to Buy ISA
November 30th saw the end of the Help to Buy ISA. Those who’ve already opened one will be able to continue saving into their accounts until November 2029.
The Lifetime ISA (LISA) is a tax-free savings account that helps 18-39 year olds save for their first home or retirement. You can save from as little as £10 per month straight from pay with the Smarterly Lifetime ISA. Contribute up to £4,000 a year* and the government will give you a 25% bonus on the money you put in. So for every £200 you save, you receive a government bonus of £50, until you’re 50.
It’s not just for first time buyers, the LISA can also be used to save for retirement. You can start withdrawing money from age 60 so it’s a great way to supplement your pension.
You can access your money before, but you’ll have to pay a 25% penalty on the amount you withdraw.
Did you know? You can have an Investment ISA and a Lifetime ISA at the same time. The Lifetime ISA counts towards your overall ISA allowance which is £20,000 for the tax year 2019/20, so you can save for the other things that matter too.
To start saving and receive discounts exclusive to University of Lincoln staff and the option to pay through the payroll, visit the Smarterly website.