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HL S&S ISA or Lifetime ISA?

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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?

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  • No one has ever become poor by giving
  • Albermarle
    Albermarle Posts: 27,808 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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
    ColdIron Posts: 9,820 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    Do you now, or expect to, pay higher rate tax?
  • 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. 


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