Lifetime ISAs from age 40 onwards

13paul13

Hello.

The rules I am referring to for this thread are as follows: “You must be 18 or over but under 40 to open a Lifetime ISA.”

I’m now aged 40. I have a cash Lifetime ISA and have maxed it over the past few years. It’s not for a 1st home, it’s for retirement.

Do the rules I quoted in the first paragraph mean that, now I’m over the age of 39, I can’t now ever open a new Lifetime ISA just to transfer my existing Lifetime ISA into? So if the interest rate on my account becomes less competitive in the years ahead, I’m stuck with it and can’t open and then transfer to another provider who might have a much higher interest rate? If that’s the case, is that fair as it could mean 20 years not getting the best return for the money and so lose out on £100s or £1,000s in interest over that time. (I appreciate that you get a £1,000 bonus if depositing the full £4,000 and I don’t mind not having access to the money until age 60, but I’d still like to get the most out of it in terms of interest.)

Dazed_and_C0nfused

Google is your friend.

https://www.ajbell.co.uk/learn/lifetime-isa-over-40

ColdIron

13paul13 said:

I’m now aged 40. I have a cash Lifetime ISA and have maxed it over the past few years. It’s not for a 1st home, it’s for retirement.

Cash for the next 20 years will be badly eroded by inflation. If £100 today buys 100 loaves of bread in 20 years it might buy you less than 60 and you won't get the £1,000 top up for 10 of those years. You should look at a stocks and shares LISA

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Albermarle

As above

Lifetime ISA | AJ Bell Dodl

13paul13

Thank you for the replies 🙂.