Compelling reasons: Growing a Lifetime ISA for retirement

clock • 3 min read

For some clients, there are compelling reasons why the LISA can be used as a complement to the tax benefits on offer in pensions, writes Joshua Croft

One of the now discarded policies from the not-so-mini budget recently was to reduce basic rate income tax from 20% to 19%, this would have reduced income tax paid but also the basic rate tax relief claimed on pension contributions. Had it been implemented some may have looked at the lifetime ISA, or LISA, with its 25% government bonus, more favourably than a pension. Even with the U-turn on the basic rate cut, meaning pension tax relief is still the equivalent of the 25% LISA bonus, LISAs may still be seen as useful for retirement savings. Following their introduction in 2017, LIS...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ISAs

Investors flock to ISAs amid fears of Autumn Budget CGT hike

Investors flock to ISAs amid fears of Autumn Budget CGT hike

Rise in maxed out allowances as Budget looms

Cristian Angeloni
clock 23 October 2024 • 3 min read
Why clients should consider a switch from Help to Buy to Lifetime ISA

Why clients should consider a switch from Help to Buy to Lifetime ISA

Almost five years since Help to Buy ISAs were closed to new applicants

Laura Suter
clock 22 October 2024 • 3 min read
Advice industry split on whether a simplified ISA system is needed

Advice industry split on whether a simplified ISA system is needed

Some call for less variations but others say ‘why change it now?’

Isabel Baxter
clock 14 October 2024 • 3 min read