Lifetime ISA (LISA)
Discussion
I'm looking for some guidance around the Lifetime ISA (LISA) because I am unsure if it is the right way to go.
I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
minimods said:
I'm looking for some guidance around the Lifetime ISA (LISA) because I am unsure if it is the right way to go.
I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
I take it you are within the age criteria. For long term investment, you would want to find an S&S LISA as opposed to a cash ISA. They do exist.I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
If you are looking at long term retirement investment then I would also consider a SIPP if you have allowance available. This has the same tax advantage as an S&S LISA which you can access at 55 to 58 depending on your age group. However in accessing your funds at retirement, LISA will be more flexible than a SIPP.
It's sounds as if you will definately use the LISA towards your retirement, in which case I echo the comments above about using a S&S ISA and depending on how long you have till retirement I'd be using a global equities fund or etf.
For example, I had a cash LISA but my plans changed as I no longer wanted to use it towards a property (and my pension IMO was a bit on the low side) so transferred to a S&S LISA and have invested in a Global Equities ETF.The idea is that hopefully over the long-term it will provide a decent return and at the minimum, a better return vs a cash LISA.
For example, I had a cash LISA but my plans changed as I no longer wanted to use it towards a property (and my pension IMO was a bit on the low side) so transferred to a S&S LISA and have invested in a Global Equities ETF.The idea is that hopefully over the long-term it will provide a decent return and at the minimum, a better return vs a cash LISA.
minimods said:
I'm looking for some guidance around the Lifetime ISA (LISA) because I am unsure if it is the right way to go.
I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
Can you confirm some basics first...I normally max out my S&S ISA each year and I was thinking of ways to maximise the allowance. Originally I thought the £4k was on top of the £20k but it appears they are combined. So with the bonus it technically takes it to £21k per year tax free - can anyone confirm? I own my own home so it would be used for retirement aged 60+. It can be taken as a tax free lump sum at 60 which sounds really compelling. Locking the money away for that length of time is OK but I am concerned about how the LISA will look in 25 years time, if it exists and if it is as favourable as a normal S&S ISA.
I appreciate that this is a 'crystal ball' situation, but has anyone here using the LISA for retirement and have you got any comments around this? Is the £1k/yr bonus worth the potential drawbacks? I already have a pension and as mentioned I already own a home.
1) Are you a HRT payer?
2) Are you paid under a Salary Sacrifice arrangement?
3) Are you younger than 40 years of age (I assume, yes)?
4) Do you need to have access to these monies (that would be in a LISA) all in one go?
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