Lifetime ISA

All topics Lifetime ISA Can I use my Lifetime ISA for retirement?

Can I use my Lifetime ISA for retirement?

You can pay up to £4,000 per tax year into your Lifetime ISA up until age 50, and you’ll continue to receive the 25% bonus on your contributions. After you turn 50, your savings will continue to accrue interest (Cash LISA), or receive interest gains or losses (Stocks & Shares Lifetime ISA) in the 10 years in between. You can then withdraw the full value of your LISA penalty-free when you reach age 60 (or any time after).

Whether you should consider a Lifetime ISA for retirement as either an alternative, or complementary savings option, is a complicated question and depends on several factors. If you’re considering a Lifetime ISA for retirement, we recommend you speak to an independent financial adviser first.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

For Business Saver: T&Cs apply. Max one withdrawal per day.

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