How to Know If You Really Need A Lifetime ISA

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.