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HL S&S ISA or Lifetime ISA?
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gazza85
Posts: 43 Forumite

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