Why are LISA'S only available to under 40's? 13 March at 8:11AM edited 13 March at 10:31AM in ISAs & tax-free savings 10 replies 470 views

Nadine_Thompson

I still haven't been able to afford my own home and I'm 43 and ashamed to say I've had to live at home with my dad for 8 years now. I guess I'm angry that I'm ruled out and the government don't care if you haven't got a home at that point. Why are Lisa's only available for under 40's and what is best for me to do as the way things are I'm sad thinking I won't ever have my own home.

Merlin139

Introduced in 2017 could you not have thought about it while you were under 40?

Missing out on £1k bonus per year does not prevent home ownership. In the 8 years you have lived with your dad how much deposit have you managed to save? 

My daughter in the last 4 years while being in a minimum wage job has managed to save 26k.

As she said when she opened a Lisa in 2017 while studying at collage aged 34 after 10 years of being unemployed, even though I have no wages it would be mad not to open a LISA. First 2 years she put in £100. Last 4 years she has put £4K in and also saved an additional 10K in other savings. Additionally she has paid £50 per week for board. 

trickydicky14

Merlin139 said:

Introduced in 2017 could you not have thought about it while you were under 40?

Missing out on £1k bonus per year does not prevent home ownership. In the 8 years you have lived with your dad how much deposit have you managed to save? 

My daughter in the last 4 years while being in a minimum wage job has managed to save 26k.

As she said when she opened a Lisa in 2017 while studying at collage aged 34 after 10 years of being unemployed, even though I have no wages it would be mad not to open a LISA. First 2 years she put in £100. Last 4 years she has put £4K in and also saved an additional 10K in other savings. Additionally she has paid £50 per week for board. 

Have you ever thought of doing some counselling?

I get where you are coming from, and totally agree we all need to seize the day but I think broadcasting the virtues of your child to the world without giving the OP anything positive to help them move forward is not very helpful.

Frequentlyhere

Nadine_Thompson said:

I still haven't been able to afford my own home and I'm 43 and ashamed to say I've had to live at home with my dad for 8 years now. I guess I'm angry that I'm ruled out and the government don't care if you haven't got a home at that point. Why are Lisa's only available for under 40's and what is best for me to do as the way things are I'm sad thinking I won't ever have my own home.

How much are you/can you save every month?

mark_cycling00

I find the "under 40" rule to be very unfair. 

In London I lost so many friends who in their 40s moved to Australia because they felt they would never own any property ever and that no-one cared. Some just bought a campervan and drift around southern Europe 

I think it's down to politics / identity politics.
The over 40s are considered to be a homogeneous social group thst "own all the wealth" and the under 40s feel they have very little.

So an political policy for the under-40s will be popular.

You didn't define this social grouping, you can't leave it and apply to be in the under 40s group either. So you're stuffed.

P1Fanatic

I lucked out as was 39 turning 40 mid april when they first launched. My 10 month older wife was not so lucky due to date of birth lottery. They also haven't been advertised that well (probably as not offered by many banks) so you can see why folks may have missed them. That said I told both my younger brothers to open one even if they have no spare cash in case they ever want to use it but neither of them did before hitting 40 despite several reminders.

There were Help to Buy ISA's as well but they have stopped. Hopefully you can provide some more details on your current financial situation and folks on here can give you some ideas.

eskbanker

mark_cycling00 said:

The over 40s are considered to be a homogeneous social group thst "own all the wealth" and the under 40s feel they have very little.

So an political policy for the under-40s will be popular.

You didn't define this social grouping, you can't leave it and apply to be in the under 40s group either. So you're stuffed.

Considered by who?  Anyone perceiving that the population can be split roughly down the middle and pigeonholed into two 'homogeneous social groups' would seem to be taking a remarkably simplistic approach to demographics....

jimjames

Nadine_Thompson said:

 Why are Lisa's only available for under 40's and what is best for me to do as the way things are I'm sad thinking I won't ever have my own home.

Because those are the rules the government have set. Same as the rules that mean I lose child benefit if I'm paying higher rate tax and my wife isn't working yet the couple next door earning £49k each get the full amount yet earn considerably more than me. 
The bonus isn't actually that significant in the scale of things so don't think that's stopped you buying a home.

Albermarle

With the price of housing, the £1K pa  LISA bonus, even for a few years, is not going to make a house affordable in itself.
More likely it will just about pay the conveyancing fees, some decorating and maybe a couple of pieces of furniture.

Frogletina

Unfortunately we can all look back and think things are unfair.

EG - I've paid tax on my savings for many more years than those a lot younger than me as the Personal Savings Allowance did not exist or Isas of any kind, let alone Lisas when I first had any savings.

I go back to the 'good old days' when you didn't get the equivalent of child benefit for your first child.

Rich2808

No real logic to it I agree - there are a growing number of renters aged over 40.

No real logic either as to why the help to buy isa - which is available to over 40s but too late to open a new one - has a property limt of only £250k outside London.

The policy focus has moved on - and I doubt this will ever change.