Turning 40, worth opening a LISA what ever?

Firstly, should I open a LISA at all?

I have a pension and ISAs elsewhere. My employer contributes to my pension

I could afford to make contributions to both a pension and a LISA.

However I use my ISA allowance in a IFISA to offset P2P income of about 12%/yr (not including defaults). Even with the tax refund, I am not sure a LISA would beat the P2P return

Secondly, I am 40 in a months time, should I open a LISA anyway, simply because I cant after 40?

Comments

  • Alexland
    Alexland Posts: 9,652
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    edited 24 February 2018 at 4:28PM
    I would put £1 into Skipton to keep your options open assuming you have not used your full £20k allowance this tax year. You might loose a few pennies if you decide to close it.

    If you are or become a basic rate taxpayer in the next 10 years and want to save more for retirement than just the matched employer contribution it might be very useful. If you were to start putting more in you can switch it to a S&S LISA after you are 40.

    Investing for a happy retirement is one of life's biggest financial challenges. You need really big pots to get any reasonable proportion of your working income.

    I am unsure the current P2P returns you are experiencing are sustainable. My preference is backing the several hundred years of stock market returns.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.2K Banking & Borrowing
  • 249.8K Reduce Debt & Boost Income
  • 449.3K Spending & Discounts
  • 234.4K Work, Benefits & Business
  • 606.7K Mortgages, Homes & Bills
  • 172.7K Life & Family
  • 247.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards