What is a Lifetime ISA? Nutmeg explains

What is a Lifetime ISA? In this video, Nutmeg explains what a LISA investment account is, and how it can benefit you.

Make the most of your £4,000 annual allowance and get a 25% boost from the government toward your first home or your retirement.

Risk warning:

As with all investing, your capital is at risk. ISA rules apply. Tax rules may change in the future.

A Lifetime ISA may not be right for everyone. You must be 18–39 years old on or after 6th April 2017 to open one. If you need to withdraw the money before you’re 60, and it’s not for the purchase of a first home up to £450,000, or a terminal illness, you’ll pay a 25% government penalty. So you may get back less than you put in.

Compared to a pension, the Lifetime ISA is treated differently for tax purposes. Higher rate taxpayers may be better off contributing to a pension. If you choose to opt out of your workplace pension to pay into a Lifetime ISA, you will lose the benefits of the employer-matched contributions.

If you are unsure if a Lifetime ISA is the right choice for you, please seek independent financial advice.

As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Past or future performance indicators are not a reliable indicator of future performance. Pension rules apply and tax rules may change in future. If you need help with pensions, seek independent financial advice.