There’s lots going for it—but there’s also a lot to get wrongby Iona Bain / April 19, 2017 / Leave a comment
It is still Britain’s foremost means of saving for retirement. But is the mighty pension facing its biggest crisis yet? That’s the question as the Lifetime Isa launches, though not in the blaze of glory that its architects might have hoped for.
The Lifetime Isa (LISA) was unveiled in last year’s Budget by former chancellor George Osborne. Aimed at satisfying two major financial ambitions—home ownership and a prosperous retirement—the LISA provides a tax-free savings and investment shelter for both, with a generous 25 per cent government bonus. Available for all under 40s, the product caps annual contributions at £4,000, meaning that someone saving from the earliest allowed age (18) up to the product’s maturity age (60) would gain £32,000 in government cash.