Retirement LISA

[user28728871]

I'm 39 and looking at opening a LISA before the end of the tax year. Are they worth doing. From what I understand I can deposit £4000 every year until I am 50 and can access the funds once I reach 60.

It can be worth doing but it all depends on your own financial circumstances.
Do you have an existing pension already? Do you have a SS ISA?
Personally, I have no intention of opening a retirement LISA as I have a SIPP and a separate workplace pension. I put the rest of my money into a SS ISA because I want more flexibility over it and can access the money prior to 60 years of age. I don’t intend to however, but the option is there if I need to. I found after having the pension and SIPP, I didn’t want anything else to “lock” away my money. If both DH and I max out the annual SS ISA (£20k each) and my annual allowance for my pension (£40k), and the kids JISA, and I still want to invest monies, then I may consider putting money into the LISA but I’ve never been in a position yet to have that much money to invest

@Fretfulmum

It can be worth doing but it all depends on your own financial circumstances. Do you have an existing pension already? Do you have a SS ISA? Personally, I have no intention of opening a retirement LISA as I have a SIPP and a separate workplace pension. I put the rest of my money into a SS ISA because I want more flexibility over it and can access the money prior to 60 years of age. I don’t intend to however, but the option is there if I need to. I found after having the pension and SIPP, I didn’t want anything else to “lock” away my money. If both DH and I max out the annual SS ISA (£20k each) and my annual allowance for my pension (£40k), and the kids JISA, and I still want to invest monies, then I may consider putting money into the LISA but I’ve never been in a position yet to have that much money to invest

I have a cash ISA and a workplace pension.

I don't have a SIPP not sure I understand enough about them to get one. I don't usually like locking money in as no one knows what's round the corner, but I want to try and invest my money so I can try and make as much out of my savings.

I've got one, I don't put a huge amount in,maybe £50 a month, and the government add 25%
I'm 40 so only have 10 years to contribute to it.

I have a good workplace pension so am more thinking of it as a savings vehicle to take a lump sum to help the dc with a house deposit or suchlike.

I'm getting a decent return with Nutmeg.

The downside is you can't draw on it early without penalty, and I believe you can't change provider either.

If you have a workplace pension check if tax and NI relief from AVCs will be more tax efficient.

Remember you pay tax on it when you take it back out of your pension but can get tax free lump sum.

It works for me as I'm self employed, so not missing out on employer pension contributions. My plan is to contribute to both LISA & private pension, to have some tax free income later.

I took it out because I was a SAHM and thought I could channel small amounts towards it on an ongoing basis. I have no current workplace pension. I am also 40 this year, so it's likely to be a small pot.

Only drawback that hasn't been mentioned to think about is if you want the money before you turn 60 the penalties of taking the money out are higher than the 25% 'gift' the government give you so you will end up with less. You can use the LISA to invest in stocks and shares if you wanted, a good way to reduce your impact of inflation.