Saving into a lifetime ISA
12th June 2017
You are able to save up to £4,000 a year into a Lifetime ISA and you can do this from the age of 18 until you reach your 50th birthday. Assuming you started contributing at the age of 18, you could put a maximum of £128,000 into a Lifetime ISA over the 32-year term.
Any amount saved into a Lifetime ISA will use up some of your annual ISA allowance (£20,000 in the 2017/18 tax year). Saving the annual maximum of £4,000 into a Lifetime ISA will therefore leave you with £16,000 left to save into other ISAs.
The Lifetime ISA is particularly attractive for the government bonus, which amounts to 25% of the value of your annual ISA contribution. For example, if you deposit £1,000 into a Lifetime ISA during the 2017/18 tax year the government will top up your account with an extra £250. Saving the maximum £4,000 each year will result in the government providing you with an extra £1,000.
The government will continue to pay out bonuses until you reach the age of 50. The maximum government contribution is therefore £32,000 – assuming you pay in £4,000 each year between the ages of 18 and 50.
Read our publication for further information and details on the Lifetime ISA