Don’t miss the opportunity of a Lifetime! How the wrong retirement Isa could cost you thousand …

dont miss the opportunity of a lifetime how the wrong retirement isa could cost you thousands

Sumary of Don’t miss the opportunity of a Lifetime! How the wrong retirement Isa could cost you thousands:

  • Hundreds of thousands of Britons have a Lifetime Individual Savings Account (Lisa), which gives them a government bonus of up to £1,000 a year on top of any interest earned.
  • They can pay in up to £4,000 a year and receive a 25 pc government bonus until they reach 50. Looking ahead: Savers are on track to have half the retirement fund they could after choosing cash over stocks for their nest eggs But if you withdraw your money for any other reason you are penalised and can be left with less than you put in.
  • The stock market is known to outperform ordinary cash savings rates over time, but research for Money Mail has found that most Lifetime Isa savers putting money away for retirement are using simple cash saving accounts.
  • The survey, by broker AJ Bell, found at least one in three people with Lifetime Isas was using theirs as a retirement fund.
  • However, three in five of those savers had an ordinary cash account.
  • Yet the same saver could have a pot worth £404,874 if they invested in a stocks and shares Lisa that grew 5pc every year, once fees of 0.3 pc were deducted.
  • Lifetime Isas allow under-40s to save for a home and retirement at once.
  • The Government offers free top-ups worth up to £32,000 if you max out your fund during your younger to middle-aged years.

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