Lifetime isa question.

413x

413x

413x

Caporegime
Joined
13 Jan 2010
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Llaneirwg
I want to potentially switch my help to buy isa to a Lisa.
I want to do this as I can save more than 200 a month.

This would be for 1st home.

What I can't seem to find out is: if I use the Lisa for a home, can I then open another new one for the 'retirement' bonus?
 
You don't open another, you actually just carry on paying into it after you have withdrawn for the house and you can then withdraw for retirement with the extra bonus etc.
 
Semple said:
Will you not lose the HTB bonus by transferring over to the LISA?
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you can only use one to buy your first house, either HTB or LISA, money websites are encouraging people to transfer HTB into a LISA as you can transfer the amount already saved and add on £4000 on top - then getting 25% on all that from the gov (if I read correctly anyway lol)
 
I'd take proper advise because I'm not so sure the LISA is the best option for retirement funds.
 
Sounds like the OP is firstly saving for a house anyway. The fact you can use it as a retirement fund is just a secondary bonus.
 
Yeah I already max out my employer contribution @ 10pc.
It' mainly for house as can get 25pc from help to buy on a larger amount per month.

What I didn't want to do was transfer from help to buy and lose Lisa if I do later fancy it for the lifetime portion.
But knowing you just keep it open sorts that
 
rG-tom said:
Have they upped the frankly ridiculous 450k upper limit on properties for lifetime ISAs yet?
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I live in London and still opened one in the vain hope they'll see sense and up the limit by the time I come to use it. Otherwise I'm funding my retirement, lol... :(
 
tamzzy said:
yeah, it definitely isn't. i'd like to think of it as something extra in addition to a pension fund


this
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Out of interest why isn't it?

Other than the cap of £4k pa. But for lower rate tax payers you get 25% relief compared to 20% relief on pensions. And then you can just invest in the same funds as you would a normal pension pot.

Obviously for 40% tax payers a proper pension with the associated relief would be much better.
 
Marvt74 said:
Out of interest why isn't it?

Other than the cap of £4k pa. But for lower rate tax payers you get 25% relief compared to 20% relief on pensions. And then you can just invest in the same funds as you would a normal pension pot.

Obviously for 40% tax payers a proper pension with the associated relief would be much better.
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You're falling into the percentage trap.

Pay £4,000 into a LISA and you get a £1,000 bonus at the end of the year.

Pay £4,000 into a pension as a basic rate tax payer, and you'll reclaim £1,000.

Of course, through an employer (disregarding employer contributions) there's also the opportunity to make a saving on NI contributions too.
 
Hi all.

I have a question. Iv been saving in to a help to buy ISA account since April 2016.

I really should have opened a Lisa in April 2017 but didn't ! If I open one now and transfer my h2b ISA in to a lifetime ISA I'm going to have to wait a year before I can buy?

I completely missed this bit. I don't know why I didn't sign up
 
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