Overview
- Martin Lewis told listeners on Friday to put at least £1 into a Lifetime ISA now so they keep access if the scheme is closed to new customers.
- The Labour government is consulting on replacing the Lifetime ISA with a First-Time Buyer ISA that would be available only for property purchases while existing LISA accounts would stay open.
- A Lifetime ISA currently gives a 25% government bonus on up to £4,000 of contributions each tax year, meaning savers can get up to £1,000 in bonus cash annually.
- Under the proposals there would be no direct LISA-style bonus for retirement, a change that could hurt people who cannot use workplace pensions such as some self-employed or non-pensioned workers.
- The plan is still a consultation with no set timetable for law changes so savers should weigh opening a LISA now to preserve the option and watch for the Treasury’s next steps and any wider ISA rule changes.