Anyone opening a LISA for their retirement?

Is anyone considering opening a LISA for their retirement?

I've already got a HTB ISA, but was wondering if their is any benefit in opening up a LISA for this tax year with the aim of using it for retirement?

How does it work if you've already contributed to a HTB ISA this tax year? Can you just open it and put in £4000 if you haven't reached the overall ISA threshold?

Comments

  • Yep you can subscribe to both.

    Just be aware you can't take anything out until you are 60, and don't use it as a replacement for pensions etc.
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Yes you are fine as they are different types of ISA and they won't collectively breach the £20k per tax year contribution limit.

    The overwhelming view is that a S&S LISA would be more appropriate than a Cash ISA to avoid the spending power being erroded by inflation.

    Also for higher rate taxpayers and those who could get additional employer matched contributions then a workplace pension is usually better.

    Alex
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