I'm 34 years old - Is it still worth it to open a LISA?

Theresonly1

I'm wouldn't be a first-time buyer and if I open a LISA it would towards my retirement.

If it is still worth opening one at my age; how much portion of my salary should I ideally put towards it?

dunstonh

Yes it is if the timescale fits and you are a basic rate taxpayer or lower.

If it is still worth opening one at my age; how much portion of my salary should I ideally put towards it?

You should aim to maximise the £4000 allowance if possible.

Theresonly1

oh. i'm not a basic rate tax payer. i'm more of a high rate tax payer.

MisterMotivated

I was 34 when I opened mine.  As for how much you should put into it, that depends on your personal circumstances

parchedpeas

Yes, unless you're on benefits of any sort (the 6k / 16k rule)

The cash is tax free when you withdraw it, so if you can keep it in there long enough it's a useful bridge to your retirement (after 60) as it won't feature as income in your tax returns, unlike a pension.

eskbanker

Theresonly1 said:

oh. i'm not a basic rate tax payer. i'm more of a high rate tax payer.

In which case, the tax relief available on contributions will typically make pensions a more attractive proposition than a LISA - see https://www.moneysavingexpert.com/savings/lifetime-isas/#pension-2 for the comparison.

pjread

eskbanker said:

Theresonly1 said:

oh. i'm not a basic rate tax payer. i'm more of a high rate tax payer.

In which case, the tax relief available on contributions will typically make pensions a more attractive proposition than a LISA - see https://www.moneysavingexpert.com/savings/lifetime-isas/#pension-2 for the comparison.

Unless any of the following apply

• You're likely to reach the lifetime allowance
• You're filling the annual allowance (including carry-back)
• You're contributing enough in any year to drop out of higher rate tax
  
• You have yet to and intend to buy your first home
  

Personally I opened one later than you, mostly to get it in place before I was 40 (you can contribute until 50, but only open before 40).  Pension is generally the more attractive vehicle if none of the above apply, but I'd still be inclined to open one while they exist as might be useful later. 

Alexland

I was over 34 when opening my S&S LISA when they launched around 5 years ago.
For me it's more of a side investment account to help the kids with weddings and house deposits when I am 60+ and they will be in their 20s. As such the money doesn't form part of my retirement planning.
I've already used around half the frozen LTA and with further contributions while I am working and investment growth then there's not much scope for making more use of my pensions although I still contribute enough to avoid higher rate tax and be eligible for child benefit.

eskbanker

pjread said:

eskbanker said:

Theresonly1 said:

oh. i'm not a basic rate tax payer. i'm more of a high rate tax payer.

In which case, the tax relief available on contributions will typically make pensions a more attractive proposition than a LISA - see https://www.moneysavingexpert.com/savings/lifetime-isas/#pension-2 for the comparison.

Unless any of the following apply

• You're likely to reach the lifetime allowance
• You're filling the annual allowance (including carry-back)
• You're contributing enough in any year to drop out of higher rate tax
  
• You have yet to and intend to buy your first home
  

Personally I opened one later than you, mostly to get it in place before I was 40 (you can contribute until 50, but only open before 40).  Pension is generally the more attractive vehicle if none of the above apply, but I'd still be inclined to open one while they exist as might be useful later. 

Yes, I was perhaps a little vague with 'typically', in that, as you rightly point out, there are a number of scenarios where the generalisation doesn't apply, so OP needs to research the detail as it pertains to their own specific circumstances, although has said that they've owned a home.  Agree that opening a LISA, even if not funding it with anything particularly substantial initially, is a sensible precaution in order to keep options open before it's too late....

Theresonly1

thanks for all reply. very useful.