Lifetime ISA

mattoo

Hello, 

Wonder if anyone could help? I've not really paid attention to the Lifetime ISA thinking it was only for saving towards a home but it caught my eye recently as I'm nearly 39 and noticed I don't have long left if I want to open one. 

So I'm looking at it as a 2nd pension option rather than toward first home as I have already purchased a family home. Everywhere says that normally an employer pension beats the LISA and especially if you are a higher rate taxpayer. However, I'm in a slightly unusual yet fortunate position whereby my joint employer/employee pension contributions per year are excellent and at retirement, my pension will likely be greater than the LTA. 

Therefore, would it make sense for me to save £4000 per year in the LISA and at retirement age I can access this whole pot tax free, having taken advantage of 11 years of the govt. top up? I can't find any examples where it is suggested to be better value or am I better to open a SIPP and claim 40% tax relief?

Thank you for your time and help.

Alistair31

LISA sounds ideal for your situation.

Alexland

So if you are already contributing the maximum you can to your workplace pension and have used any previous carry forward allowance but are still paying 40% tax on some of your income then the pension option is exhausted so there is no harm in taking the 25% bonus on LISA contributions.

JakeMM

Open one now! For retirement, potentially think to a stocks and shares ISA as you should consider an investment of 10 years plus to go for stocks over cash.

But just open one and chuck £1 in. Then you're in no rush to make this decision, and the account is live. You can then leave it for a few years if you want, before you make this decision.