Budget

green_man

Also limited to £4k a year net saving, can only be set up by people aged between 18 and 40, bonus only payable on savings made before age 50.

Does it say 18-40 anywhere because the chancellor actually said available to anybody under 40, which suggests it could be available to minors?

PensionTech

Does it say 18-40 anywhere because the chancellor actually said available to anybody under 40, which suggests it could be available to minors?

Yes, here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf

Triumph13

Clearly the shape of things to come and no-one will be surprised if the allowance for this goes up and for pensions goes down in future budgets.
I'll be interested to see if they put in place any rules about whether it's treated as savings with respect to means-tested benefits. One advantage of a pension was that it was ignored for these. Not nice if you lose your job and find you have to pay a 5% penalty to withdraw these funds and live off them before qualifying for benefits.

PensionTech

Not nice if you lose your job and find you have to pay a 5% penalty to withdraw these funds and live off them before qualifying for benefits.

Good point; I'd also like to see how they are treated in terms of bankruptcy too.

david78

Lets not forget we have the referendum on Europe to come. The chancellor can introduce some more tax hikes in the Autumn.

cheesetoast

They've said that they'll "consider releasing money in a Lifetime ISA for other events also".

Call me cynical, but...

"Hi, I've been made redundant, and need to claim benefits please"
"No need for that, Sir - I can see that you've got £10,000 in a Lifetime ISA. I'll just release that for you, and you can live off it for the next year..."
"But... but... that's for my pension"
"Shut up"

"I've just been made bankrupt. At least they can't touch my pension..."
"Well no, but we can release the money in your Lifetime ISA for the Official Receiver to pay off your debts with..."
"How will I have anything to retire on?"
"Shut up"

"I've been overpaid some benefit. Can I pay it back at a few pounds a week?"
"Don't worry, Madam - we'll release it from your Lifetime ISA..."
"No, I'd rather pay it off over time and protect my savings"
"Shut up"

kidmugsy

Andrew_Cottrell wrote: »

No tax on withdrawal and obviously no pension commencement lump sum.

Put otherwise, there's the equivalent of a 100% PCLS.

kingrulzuk

cheesetoast wrote: »

They've said that they'll "consider releasing money in a Lifetime ISA for other events also".

Call me cynical, but...

"Hi, I've been made redundant, and need to claim benefits please"
"No need for that, Sir - I can see that you've got £10,000 in a Lifetime ISA. I'll just release that for you, and you can live off it for the next year..."
"But... but... that's for my pension"
"Shut up"

"I've just been made bankrupt. At least they can't touch my pension..."
"Well no, but we can release the money in your Lifetime ISA for the Official Receiver to pay off your debts with..."
"How will I have anything to retire on?"
"Shut up"

"I've been overpaid some benefit. Can I pay it back at a few pounds a week?"
"Don't worry, Madam - we'll release it from your Lifetime ISA..."
"No, I'd rather pay it off over time and protect my savings"
"Shut up"

HAhahhahahaah funny

flowers2veg

Agree with Cheesetoast, someone I know became unemployed and they tried to convince him to sell his house.

On the other side I am 50 thus not entitled and I have seen my retirement age rise from 60 to 67 and it will probably go up higher what is the answer I do not know, wish I had not stayed at home to care for my children wish I had had the foresight to work and pay into a private pension but it was never an issue back then. As I spent years at home I have only been able to obtain a low paid job I am at a loss as to how I will ever be able to retire.

Sterlingtimes

cheesetoast wrote: »

"Hi, I've been made redundant, and need to claim benefits please"
"No need for that, Sir - I can see that you've got £10,000 in a Lifetime ISA. I'll just release that for you, and you can live off it for the next year..."

I had all sorts of problems years ago when I had a Personal Equity Plan and was made redundant. The pension provides a shield.