HL S&S ISA or Lifetime ISA?

gazza85

Currently looking to start investing now that I've purchased a house.. I'm weighing up whether to Invest within a S&S ISA or a Lifetime ISA... I went to open a S&S ISA then noticed HL also offer a LISA. Would I be better off investing in the LISA, as the government add the 25% bonus Monthly which I could invest (?) and you only get charged 25% if withdrawing before 60.. so I could keep any potential gains (hopefully) from the inital 25% bonus?

thegentleway

https://www.moneysavingexpert.com/savings/lifetime-isas/

Albermarle

A LISA can be used for retirement saving . A S&S ISA is normally better for more medium / long term savings that you may want before retirement .
In this case it is better to compare a LISA with saving into a pension . What does your pension provision look like?
https://www.moneysavingexpert.com/savings/lifetime-isas/

ColdIron

Do you now, or expect to, pay higher rate tax?

grumiofoundation

gazza85 said:

Currently looking to start investing now that I've purchased a house.. I'm weighing up whether to Invest within a S&S ISA or a Lifetime ISA... I went to open a S&S ISA then noticed HL also offer a LISA. What about pension?

Would I be better off investing in the LISA, as the government add the 25% bonus Monthly which I could invest (?) and you only get charged 25% (of balance not of contribution) if withdrawing before 60.. so I could keep any potential gains (hopefully) from the inital 25% bonus? See below

Thats not how the maths on the withdrawal penalty works.

Say you invest 1000 in Stocks and shares ISA - over period of time doubles to £2000.

Invest £1000 in LISA in same product. Bonus makes it £1250. Worth £2500 after same time period as above.

Have to pay 25% penalty on 2500 - so £625 therefore only get £1875 - less than Stocks and shares ISA.