BR Tax Payer - LISA or Pension

JustAnotherSaver

atush wrote: »

It isnt one or the other, you can do both.

cloud_dog wrote: »

'Best' is a subjective word but, as you have discovered on your recent journey of understanding, a LISA would be financially a better option for a BRT payer.

There are things to consider regarding a LISA (discussed above; age 60 for withdrawal, money still attributed as an asset).

The general suggestion for BRT payer would be to use the LISA until aged 50 then continue in a pension. The above considerations not withstanding.

One aspect that can alter the bias of this equation is if your company pays you with Salary Sacrifice (salary exchange). This allows a BRT payer to save an additional 12% of the contribution from not having to pay NI. Additionally some companies may pass on some/all of their NI contribution savings to you, although this not usual.

It is a personal judgement call as to what is best and what the individual is comfortable with.

Maybe i shouldn't have branched out and asked about my brothers & sisters situations regarding being first time buyers as i'm not quite sure if you guys are replying to their situation or mine now.


When you say you can do both, are you saying you can pay in to a cash LISA and a S&S ISA? If so then i'm aware of that, i'm just wondering what the best/wisest (insert most suitable term here) approach would be.


They'd have an amount going towards their house and an amount going towards retirement. Currently that's in the form of a cash LISA and a SIPP but obviously once it's in the SIPP it stays there.
From this thread i've learned in our situations, as far as retirement contributions go, it could be better to go with the LISA, but like i said, once their money is in the SIPP it's in the SIPP.
So would it be a better idea then do pay that 'SIPP money (retirement plan)' in to a S&S ISA so that when the day comes where they cash in their cash LISA and buy their house they can then transfer their S&S ISA money in to a S&S LISA and use that as their retirement plan ... until age 50 or until their situation changes whereby a pension wrapper may be more suitable?