Investing into LISA that cant access til 60

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So - 60 = 22 years away 4 me.

The last 10 years have flown by..

Im considering putting 4k into LISA later this year ( i turn 39 later this yr )

Gov would then add a 1k bonus

But - that 5k = locked away for another 21 ish years..

I have ' other money ' that can access b4 then - some - not tons

But yeah

Just wondering if others are of similar age & investing into LISA for retirement etc
And to utilise the 1k bonus per year you put in 4k..

(???)

( you cant add anymore when your over 50)

What happens to the money if you die before you turn 60? I'm a similar age to you and that would affect my decision.

If u get a terninal diagnosis you can take it etc.

I guess if u died it would go to will beneficiaries

Yes, I have this account. I opened it a few years ago, so I have accrued a few years' worth of the gov bonuses. I have the £4k ready to transfer over next week, then can spend the next 12 months saving to contribute to the following year's. This is not my only savings account, so have a mix of easy access and locked. I plan to continue with the LISA until I am 50, so I have another 12 years of contributions.

Sounds wise

Think il wait til dec this year and then put 4k in

If you open a SIPP, you also get government top ups but can put in more than £4 a year.

Ahh
Assume u mean can put in more than 4k

I dont know much / enough about sipp

But I thought sipp was kinda risking ur money a bit (?)
Whereas LISA isnt ?

You can put in far money in a SIPP. You still get 25 percent government top up. You can pick how money is invested. They offer you 3 risk options 1. Safe like gilts, not very high returns on investments, 2. Medium risk and medium returns and 3 higher risk and generally higher returns. On all you'd get som interest payments. You can take it at at 55 years but I believe it's going up to 57/8 years soon.

Thanks ,
I appreciate that

Is there a limit of having to open one by x age ?

And for sipp - is the interest yearly or monthly or ?
Thanks

If your money is going to be locked away for that long, you may as well go for a stocks and shares LISA (if anyone is offering them). You should get better returns over 20 years.

Personally, I don't want to lock money away in an LISA until I'm 60!

My plan is to build up a stocks and shares ISA, and when I get to 50/55 and want to start working less or even retire, use my ISA money to bridge the gap until I can start using pension.

See i already kinda work less ( part time )
Due to health conditions and a disability

But in my younger years worked some years of 60 hrs a week.

Your plan sounds gd 4 you
And makes sense 4 u tho

No age limit. I'm 63 and put in £10k in each year. I use the Scottish Widows online one. I've always had good customer service too.

You get the same effective uplift investing in a LISA or a SIPP. Earnings in the account are tax free. When you access the LISA age 60 or above, there will be no more tax to pay. When you access the SIPP (possible from 10 years before your state pension age, thus perhaps from age 58 in your case), 25% is tax free and the rest is taxed as income.

If you're investing for retirement, it probably makes sense to use both, but agree you need to be investing with that long-term in mind, not just cash.