Every April, the government comes up with new ideas as to
how to use taxes and play with our savings. Not that it's a bad thing,
necessarily.
I could just say that the lifetime ISA can be useful. The
lifetime ISA, as marketed by our current governments, would help us boost
contributions. The government itself would top-up our retirement fund if we
don't touch it until our retirement.
But who would really benefit from this kind of financing?
It would always be the case that savers are misinformed.
Savers may struggle to clearly identify the benefits of each savings vehicle.
So it would be best simplified, according to experts.
“The Lifetime Isa should provide a valuable extra option for
savers, but the Government faces a race against time to get the rules in place
by April 2017,” said Andy Bell, chief executive of A J Bell, the investment
shop.
“We are concerned that the Government risks making the same
mistakes with Isas that Gordon Brown and others did with pensions. Simplicity
is one of the key attractions of the Isa, but from April next year there will
be no fewer than five different types of Isa, each subject to different rules
and with different limits.”
So here's how it is.
Lifetime ISAs can help you save money to buy a new home or
something until your retirement. The liftime ISAs would have to be a hard
choice between lifetime ISAs or the tax relief offered by pensions.
Homebuyers can definitely use the Help to Buy ISA and
Lifetime ISA to help you buy a home or anything at such a point in time. You
can save about £200 when you deposit around £1,000. You could deposit only in
cash, then attract interest rates until you need to buy a property.
When you save more than £4,000 yearly, you can receive a 25
per cent top-up.
