Keep LISA After Home Purchase? Need Fast Advice!

Angelica123

Albermarle said:

Angelica123 said:

trevorplatt said:

Hi all,

I need a little advice. I'm soon to buy my first home and I'm using my LISA for this but I have the option of leaving some (a very small amount) in and keeping it for a pension fund, which I can start contributing to. Is this a worthwhile option or should I use it all on my home purchase?

I'm self employed and earn approx. £23k (after taxes/expenses). I already have a very small gov pension from 9 years employment as a band2/3 (this ended in 2010). I do not make any current pension contributions and don't receive any other pension contributions from anywher else. I'm in my early 40s. If any other info is useful let me know and I'll edit this post.

Trev.

As you are now over 40, if you closed the LISA, you wouldn't be able to open a new one later down the line. I see no harm in keeping a token amount in the LISA to keep it open while you gather more information. LISA can be a useful retirement asset as a basic tax payer (as a higher tax payer, pension almost always trumps LISA as best retirement product). 

On a wider note though, you definitely need to prioritise retirement planning - you need to start contributing to a pension or a LISA ( or both ) ASAP. You leave yourself in a vulnerable position 

Added a comment in bold.

Very true. Thank you

Emmia

trevorplatt said:

Hi all,

I need a little advice. I'm soon to buy my first home and I'm using my LISA for this but I have the option of leaving some (a very small amount) in and keeping it for a pension fund, which I can start contributing to. Is this a worthwhile option or should I use it all on my home purchase?

I'm self employed and earn approx. £23k (after taxes/expenses). I already have a very small gov pension from 9 years employment as a band2/3 (this ended in 2010). I do not make any current pension contributions and don't receive any other pension contributions from anywher else. I'm in my early 40s. If any other info is useful let me know and I'll edit this post.

EDIT: Thanks you all for the replys, they are all very useful. I'm kicking myself that it wasn't more obvious but, yes, if I colse it now I can't reopen it later - I'm going to leave in a token amount and when I've got a handle on my new monthly budget I can make a decision then. Plus, it gives me time to do some real reasearch.

Thank you all again. Have a great weekend everyone.

Trev.

At that level you're not earning much over NMW. Financially you may be better considering whether self employment is actually a good idea - employment would get you pension from an employer, paid leave...