just wondering how people feel about the LISA (lifetime ISA)
just been looking into them and I like the idea in principle but theres something nagging me that my money is better elsewhere?
I agree with @homie I've also got a SIPP, an ISA and premium bonds. I'm quite risk averse with my money.Is this something you would do @katykicker ?
I REALLY need to start something for savings.... and pensions lol
Apologies if late, but I disagree with @homie if you're a higher rate tax payer.
25% is a fantastic return, but you effectively get a return 40% (or 45% if upper tax rate payer) thanks to tax relief on your pension. The other advantage is that you can (currently) access your pension at 55, but a LISA at 60.
The 25% penalty for early withdrawal isn't just the government clawing back their contribution either. It's a 25% penalty on your whole pot i.e. both your contributions and theirs.
Of course, if you're gonna use it as a first-time buyer then def. still worth it, no matter what tax band you're in.
Apologies if late, but I disagree with @homie if you're a higher rate tax payer.
25% is a fantastic return, but you effectively get a return 40% (or 45% if upper tax rate payer) thanks to tax relief on your pension. The other advantage is that you can (currently) access your pension at 55, but a LISA at 60.
The 25% penalty for early withdrawal isn't just the government clawing back their contribution either. It's a 25% penalty on your whole pot i.e. both your contributions and theirs.
Of course, if you're gonna use it as a first-time buyer then def. still worth it, no matter what tax band you're in.
Is this something you would do @katykicker ?
I REALLY need to start something for savings.... and pensions lol
But I think it also depends on whether you have maxed out your pension at work (i.e. whether you have already got the maximum matching from your employer or not)?
I think there is also a maximum amount you can have in your pension before you start getting charged. I really don't have the details here, but think it is about £1m.... probably not relevant for any of us!
I’ve spent the entire of tonight nearly trying to decide if I want a pension or lisa
I have neither at the moment. At the age of 37 I never have!
The lisa does sound good and I would be Lower tax %20
yeah there was one but i never opt'd in lolDidn't you have a workplace pension when you were working? I know you need to do your own thing now, but I am hoping you grabbed the free money from your employer whilst you were there? I certainly max out my free money from my employer...
yeah there was one but i never opt'd in lol
I think I was about to get automatically opt'd in this year but... well.. I left didn' I lolDoh... don't you get opted in automatically these days? Thought it came in a couple of years ago as the government is worried that no one has enough money to actually live since no one is saving enough into a pension?!
I know some schemes are really awful, but I have had a couple where they pay double your contribution up to a small % of your salary. I took the max obviously, although my pension pot is still pitiful. Stupid low interest/annuity rates.