News

Page 2

Lifetime ISA (LISA) – Is it worth a second look?

Although LISAs have been available through a few providers for over a year, they have not had the anticipated impact and take-up remains low. Is this the time to reconsider LISAs suitability? LISAs are intended to assist with one of two things, buying your first home or retirement provision.

Read More »

Twenty Somethings – Less likely to save or own a home

The Office for National Statistics (ONS) recently reported that twenty somethings are now less likely to own a home than had previously been the case, and that fewer have accumulated any savings of note. These findings have been highlighted by several media organisations over the last month, including the

Read More »

Young People’s Savings – Child Trust Funds

Children born between 2nd September 2002 and 2nd January 2011 benefited from the Child Trust Fund (CTF) introduced by the Labour government as an attempt to encourage children to save. Between these dates, new born children were given a £250 voucher each to be held in a CTF with

Read More »

Peer to Peer Lending

Despite the recent increase in the Bank of England’s base rate, interest rates available through mainstream banks and building societies, including cash ISAs, remain very low. With many years of low interest rates behind us and no expectations of significant increases in ahead of us, it is no surprise

Read More »

Banks should treat fraud victims (more) fairly.

It seems that ‘scams’ of all sorts are constantly in the news and that they grow in complexity and sophistication all the time.  With one of the more sophisticated scams, ‘authorised push payments’, victims have been blamed for their own loss by the banks.  This isn’t a minor issue;

Read More »

HMRC Interest Rates

HMRC has come under widespread criticism for what is seen as an unfair differential in the interest rate it pays to those who over-pay their tax and the rate it charges those who owe tax. The recent increase in the Bank of England’s base rate has led to an

Read More »

Investing for Good

In recent years, there has been significant growth in investors seeking more than just a financial return from their investment; many also want to see a positive social impact arising from it.  This goes beyond ‘green’, ‘ethical’ or ‘socially responsible’ investments. It involves a deeper connection with the uses

Read More »

National Savings Interest Rates

Today the Bank of England’s Monetary Policy Committee have met and have unanimously voted to increase interest rates from 0.5% to 0.75%.  The minutes of their meeting also show that, “all members agreed that any future increases in [the] bank rate were likely to be at a gradual pace

Read More »

Pension (and other) Scams

The City of London Police Economic Crime Directorate is recognised as the national policing lead for fraud and is dedicated to preventing and investigating fraud at all levels. According to their figures, some £51 million worth of investments was lost to fraudsters in the second quarter (April to June)

Read More »

State Pension – Calculation Errors

A Financial Times report in June revealed that many thousands of people have been receiving the wrong amount of state pension.  The errors have resulted in both under and over payments so that some pensioners will see a fall in the amount they receive when the corrected figures are

Read More »

This website uses cookies to ensure you get the best experience on our website.

Lifetime ISA (LISA) – Is it worth a second look?

Although LISAs have been available through a few providers for over a year, they have not had the anticipated impact and take-up remains low.

Is this the time to reconsider LISAs suitability?

LISAs are intended to assist with one of two things, buying your first home or retirement provision.

• You can save up to £4,000 per annum and receive a 25% bonus, however there are penalties for withdrawing monies for other purposes.

• Anyone aged 18 to 39 can take out a LISA and continue contributing up to the day before they are 50. The maximum available bonus over your lifetime is £33,000.

• A LISA can be used for the purchase of a first-time property of up to £450,000.

• It can be an appropriate tax-efficient savings vehicle for parents or grandparents to use to assist their children or grandchildren.

• If a couple are both first time buyers then they can both benefit from a LISA and double the potential bonus. However, the maximum purchase

price is still £450,000.

• It can attract both regular contributions and lump sums and be invested in either equities or cash.

In late 2015 the Help to Buy ISA was introduced, and it is possible to hold both. However, a bonus can only be received through one and consideration has to be given to the use of one over the other, or the holding of both.

Primarily, if the holder of the LISA is going to purchase a home for up to £450,000, are aged between 18 and 39, but are not going to do it within a year, then the LISA will give you a larger bonus.

For retirement provision, the funds accumulated in a LISA are intended
to be accessed from age 60. Further consideration may be given to the relative benefits of a LISA compared to pensions and / or other alternative long-term savings vehicles.