MSE News: Lifetime ISA and Help to Save applicants need guidance, Martin tells MPs

MSE_Luke

Martin Lewis has warned that two new savings schemes being launched by the Government must come with clear guidance...

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'Lifetime ISA and Help to Save applicants need guidance, Martin tells MPs'

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Ed-1

MSE_Luke wrote: »

Martin Lewis has warned that two new savings schemes being launched by the Government must come with clear guidance...

Read the full story:
'Lifetime ISA and Help to Save applicants need guidance, Martin tells MPs'

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Martin mentioned that he thinks there should be a one year review of minor terms. But remember the Government is open to changing the terms in the future anyway. For example, by adding in other lifetime events and the ability to borrow from the LISA (similar to American 401k pension plans), both without charge (if the funds are fully repaid for the latter). The Bill contains a clause which allows these terms to be changed relatively easily (by secondary regulations).

Updated technical note

"1.41 The government is continuing to consider whether there should be the flexibility to borrow funds from the Lifetime ISA without incurring a charge if the borrowed funds are fully repaid, and whether there should be other specific life events where individuals can have access to their Lifetime ISA without a government charge. However, the government has decided that these will not be a feature of the product when it becomes available in April 2017."