lifetime ISA

dd95

looking into the above

are they worth it for someone in their early 20's just to put in a small amount per month originally?

masonic

Presumably you are considering this for retirement rather than buying your first home?

There is some detailed information here concerning the merits of pension vs LISA:
https://www.moneysavingexpert.com/savings/lifetime-isas/#pension-2

Whether it is worth it for you would depend on your circumstances, mainly your marginal rate of tax and details of the pension options available to you.

dd95

i yes as i have a HTB ISA

pip895

Cant you use both when you buy your first house?

dd95

i don't think you can

Alistair31

Is this in addition to, or instead of, the ISA you were just asking about ?

bhjm

pip895 wrote: »

Cant you use both when you buy your first house?

you could but would not get the gov bonus for the HTB

dd95

Alistair - ive opened a S and S ISA

i was just wondering whether it would be worth opening a LISA in my early twenties and adding a small amount each month to reap benefit of compound interest etc?

Alistair31

Are you thinking about a cash LISA ? (Given that you mention compound interest)

I doubt that would be suitable over such a long period.

You might want to consider a S&S LISA, however. You’ll need to consider if you foresee a retirement before 60, in which case it may be best to stick with contributions to your S&S ISA.

Each wrapper has its own merits and drawbacks which are, IMO, presented very clearly on the various links you have been provided over this thread and the last.

Final thought; Walk before you try to run.

dd95

thanks Alistair I appreciate the response as you seem very knowledgable.

im just trying to formulate a sensible plan now ahead of when my salary starts to increase regularly so im better equipped to know what to put where.

masonic

dd95 wrote: »

im just trying to formulate a sensible plan now ahead of when my salary starts to increase regularly so im better equipped to know what to put where.

What you need to formulate is a retirement plan. Then you can pick the right products to support that. Pension, S&S ISA and S&S LISA can all fulfil a role in that plan, especially for the early retiree. Personal circumstances such as current and likely future income, how your workplace pension if any operates (employer matching, salary sacrifice etc), likely retirement age and living costs in retirement, need to be factored in when considering how to allocate money between those products.

If you come back with a plan and those details, others could comment about whether your plan is sensible or not.