I have opened a LISA with Moneybox

IloveElephants

Hi Everyone,
First I just want to say a big thank you to everyone on this forum for sharing knowledge, I really appreciate it!!

I am 36 years old, I am single and have no pension, 2 weeks ago I opened a money box LISA Account. I deposited £21 in to test the water, It says I have to add £3,979 left to save for this tax year 6 weeks remaining. 

Now I know the limit is 4k per tax year so If I top this account to 4k by the end of February will i automatically get my bonus money the day after the new tax year? Then can I add another 4k in 6 weeks time again in the new tax year?

I am not looking to touch this account only if I want to buy my first property or to grow a pension as currently I do not have a pension and you are not allowed to open 2 LISA accounts.

So if anyone can help I would appreciate the advise. 

Thank You Everyone

Elisheba

I've just opened one as well, and yes, that is my understanding.  Although I won't be adding £4k this year, if I did then I would get the £1k top up.  The same for every year until I am 50. You will only be able to withdraw the extra top up money for a first time buyer house, or when you turn 60 though.  If you wanted to withdraw your capital for any other reason, you would lose about 6% (I can't remember exactly) of that due to withdrawal penalties.

In regards to a pension though, have a read through this site to see if a LISA is the best option.  Other than the government top up until you turn 50, it is not high interest paying account and you might be better with something else.

IloveElephants

Elisheba said:

I've just opened one as well, and yes, that is my understanding.  Although I won't be adding £4k this year, if I did then I would get the £1k top up.  The same for every year until I am 50. You will only be able to withdraw the extra top up money for a first time buyer house, or when you turn 60 though.  If you wanted to withdraw your capital for any other reason, you would lose about 6% (I can't remember exactly) of that due to withdrawal penalties.

In regards to a pension though, have a read through this site to see if a LISA is the best option.  Other than the government top up until you turn 50, it is not high interest paying account and you might be better with something else.

Thanks for your comment, yes I will have to look at a private independent pension as my company and companies in the past Ive worked for never had a pension plan for me. So will have to ask on here for where to begin. 

masonic

The payment cycle typically runs from 6th of month 1 to 5th of month 2. If you make a payment into the account by 5th of month 2, then you will typically receive a bonus payment towards the end of month 2 or early in month 3.

For many people, having both a LISA and a pension makes sense, because some of their pension income will be taxed in retirement whereas their LISA withdrawals will not, and they will not pay any higher rate tax (and get associated tax relief on pension contributions) during their working life.

IloveElephants

masonic said:

The payment cycle typically runs from 6th of month 1 to 5th of month 2. If you make a payment into the account by 5th of month 2, then you will typically receive a bonus payment towards the end of month 2 or early in month 3.

For many people, having both a LISA and a pension makes sense, because some of their pension income will be taxed in retirement whereas their LISA withdrawals will not, and they will not pay any higher rate tax (and get associated tax relief on pension contributions) during their working life.

Thank you for your kindness 
How do you know all this? Where do you read to becone financially literate?

Alexland

IloveElephants said:

Thank you for your kindness 
How do you know all this? Where do you read to becone financially literate?

All the information you need is on the government and product provider webpages if you invest the time into reading and thinking about the detail. This forum is a useful 'pop quiz' for the regulars to keep the knowledge brain indexed and share perspectives.

xylophone

You are currently employed? Why is there no pension scheme?
https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment

IloveElephants

xylophone said:

You are currently employed? Why is there no pension scheme?
https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment

Thanks for the info, I never knew that
its a small business 2 full time people, thats all ?

xylophone

https://www.thepensionsregulator.gov.uk/en/employers/setting-up-a-business-what-to-do-for-automatic-enrolment
Your employer needs to check the position.

IloveElephants

Thanks fxylophone said:

https://www.thepensionsregulator.gov.uk/en/employers/setting-up-a-business-what-to-do-for-automatic-enrolment
Your employer needs to check the position.

Thanks for that, I never
knew that, I will ask him tomorrow but i know im not paying into any automatic enrolment or deduction from my pay at the moment