Independent Financial Life Planners Bishop's Stortford: Lifetime Isa for the under 40s?

Sunday, 26 February 2017

Lifetime Isa for the under 40s?

Back in March 2016 George Osbourne launched a plan for younger workers to no longer have to choose between saving for a home or for retirement, as he revealed a new Lifetime Isa with a bonus of up to £1,000 a year. The new Lifetime Isa - which can be invested in stocks and shares or cash savings – launches this April to help people, aged 18 to 40 get a foot on the housing ladder, without hindering their efforts to put aside money for their pension.

Savers to this Isa can tap into their bonus pot to use some or all of the money to buy their first home, or wait until they are 60 to withdraw cash and their bonus tax-free. Savers can put in up to £4,000 a year to qualify from a maximum government bonus of £1,000 - contributions will get this 25 per cent top-up every year until age 50. This is a £1 bonus for every £4 that you save. The bonus will be paid on some or all money taken out to buy a first home, or after the age of 60.

Money taken out of the Lifetime Isa before age 60 for anything other than a first home will lose the government bonus, all interest or stock market growth delivered by that element, and face a 5 per cent charge. But the annual Lifetime Isa allowance falls within the new total £20,000 Isa umbrella. If you are a younger saver and want to find out more Enables experienced Independent Financial Advisors in Bishops Stortford are happy to help.

http://www.thisismoney.co.uk/money/pensions/article-3494870/Budget-2016-Lifetime-Isa-1k-year-bonus-save-pensions-homes.html

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

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