LISA query

System

This discussion was created from comments split from: Success Stories - Pensions.

mandb2014

Looking for a steer in the right direction. I am almost 39 so running out of time to sign up for a LISA. I have a work pension where I pay 5% and they match and thats the maximum match. Does it make sense to pay into a LISA or up my pension contributions without the match?

I live a modest life, no mortgage no consumer debt but low pension pot only 37k and 6k emergency fund. Hoping to have a reasonable retirement. I have aspiration for better but trying to make a plan for the world as it is and not as I want it to be. Just looking for some of the success stories on here ro advise me what they would do in the same position?

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/81943706#Comment_81943706

as a bare minimum you should open a LISA with a pound then you can add more later

mandb2014

https://forums.moneysavingexpert.com/discussion/comment/81943777#Comment_81943777

Thanks just opened one with moneybox and put in the £1. I can afford the rougly £400 you can put in. Would you maximise this or maybe a combination of the two? Hedge bets so to speak, £200 pension and £200 lisa.

Any negative implications with this? Generally cant figure out the better product as the world is very turbulent although pensions seem to outperform evertthing.

NoMore

https://forums.moneysavingexpert.com/discussion/comment/81943852#Comment_81943852

you should probably start your own thread. Your not posting about success stories and tbh I bet a lot of people won’t notice this but will in your own thread.

MallyGirl

I have split this out into its own thread

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/81943852#Comment_81943852

A pension or an S&S LISA can both be invested in the stock market, the difference is just the tax treatment and how you can use them. How they perform in terms of growth depends on which stocks you're invested in, not which type oof account.

Now which is better for you depends on your situation -

-whats your rough income now
-what do you expect your income to be post retirement
-what do you eexpect o need the money for (eg first house, retirement, something else)

LHW99

The maximum you can add to a LISA is £4000pa and get a £1000 top up from the government.

One advantage, if not using for house purchase, is that you can access the money at 60, whereas DB employment schemes (should you ever be lucky enough to go into one eg LGPS) are frequently SPA for access without reduction.