Enable’s IFA’S will always make sure you look at your ISA options as part of your financial planning. Another ISA came into being not so long ago called the Lifetime ISA, they were launched on 6 April 2017. In a so called LISA you can save up to £4,000 a year as a lump sum or by putting in cash when you can the state will then add a 25% bonus on top. So if you save £1,000 you’ll have £1,250 and if you save the full £4,000 you’ll have £5,000. And that’s before interest or growth.
The Lifetime ISAs are designed for two specific purposes. The first is for first-time buyers to use towards a deposit for a residential property. The second is for later life or retirement savings once you hit age 60. And if you decide to use the LISA to buy your first home, you can keep it open and save for retirement.
The idea behind mixing the two is some behavioural economics based on the idea that many under-40s are working hard saving for their first home in a way they aren’t for saving for retirement, so the idea of bringing them together is that hopefully people will build up a savings habit for their first home, then hopefully carry on afterwards.
The first year’s bonus is paid in April 2018; after which it’s paid monthly. You will also be paid interest on it. The bonus is paid on contributions ie what you put in. The maximum bonus is £32,000 (unless the rules change). Enable’s IFA’s can help you make the most of your ISA allowance.