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Self employed. LISA or pension
slaterp
Posts: 12 Forumite
Hi Asking on behalf of my son. He is self employed earning less than the 20% in one tax threshold. Should he pay into his LISA at get the 25% government bonus or pay into his pension scheme
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Comments
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As he is self employed and a basic rate taxpayer (or lower), then a LISA is likely to be marginally better than a pension in most cases (but not all).
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
This MSE article explains it all.
There is a section on LISA's for retirement ( as opposed to buying a house)
For most people pension is better but as said for someone self employed , the LISA is a good alternative.
Note the comments in the article that when looking to the long term it is better to have a stocks and shares LISA rather than a cash one .
https://www.moneysavingexpert.com/savings/lifetime-isas/
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If he’s likely to ever claim benefits then money in a pension is disregarded. But a LISA would be considered.0
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