Lifetime ISA explained: Is it worth it?
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Published 2021-03-21
Sounds good right? Too good to be true? There must be a catch right? Well, yes. But as long as you use the cash towards buying your first home or for retirement a Lifetime ISA can be a better option than alternatives.
In this video I've shared what a Lifetime ISA is and how it works, who can get one and the restrictions on use - such as a 25% penalty to take the cash out for any other reason.
Plus I've compared them to Help to Buy ISAs and Pensions to help you decide if they're right for you.
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A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.
All Comments (21)
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Brilliant explanaition, thanks Andy. Needed it just before I started a research project!
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Very helpful video thanks Andy !
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This was SO helpful, thanks so much for spelling it all out!
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I’ve been contemplating to open a LISA, Great video
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Thanks for the great video as always. The channel is growing fast. Keep it up
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This is brilliant...just the facts and easily understandable....
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Great video really well explained!! Any advice for someone who wants to build there 1st home? I already have a first to buy isa but I've now decided to build.
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Another fab video Andy! I’m a big fan of LISAs.
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Really helpful. Thank you
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Very helpful video, thank you very much for clarifying a lot of confusions. Is there any restrictions on what kind of property can be used with this lifetime ISA? I understand that when buying a house, you can get different mortgage deals, is there any restrictions about mortgage package from different lifetime ISA providers?
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great video Andy, thank you very much I wish I knew this before because I just turn 40y
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Other reasons to invest in to a Liftime ISA is if you are already contributing the full annual allowance to your pension or if you are at risk of breaching the pension lifetime allowance. It can also be part of an early retirement strategy to supplement income until you can draw your state pension.
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Thank you Andy!
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Thank you! This is very informative. Will there be any conflict if My partner and I open different LISA for one property we gonna buy. I mean like, is there any one to one rule between LISA and the property?
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Great video! Quick question though can you use the first time buyers option if you have inherited a house? I would assume so as the inherited house wasn't purchased correct?
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Great comparison of Pension and ISA
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Thank you for the video. question : is that I am joint owner of a property. I am no longer a first time buyer.. is thos correct. Thank you for the upload. Very informative.
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Great video!!! I was going to plow £20k into a stocks and shares ISA next year but now I will definitely be putting £4k in a LISA then probably invest in something very safe like S&P 500 then forget about it until I’m 60! Thanks so much for this info!! Just wish the allowance would go up!
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Really good video, some timeline breaks would have been useful for each section. Great content though 👍
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Great video Thankyou. One point I have a query on is the part you talk about waying up the odds of investing more into your workplace pension if you’re a higher tax payer or Lisa. If you pay the money into your pension to reduce your 40% tax bill when you draw your pension you will be taxed 20% anyways so for the 4k allowance it’s always better to invest into a lisa? Please correct me if I’m wrong 😬
