Experts fire warning that traditional pension savings shouldn’t be passed overThe lifetime Isa announced in last week’s budget has split opinion among pension experts,with some warning it could force young people to work until they drop, but others hailing it as a “no-brainer” for younger workers.
The accounts are designed to wait on young people save for their first domestic or for retirement. Anyone aged between 18 and 40 when the lifetime Isa – or “Lisa as it has been dubbed – launches in April 2017 can open one, and any savings you put into it before your 50th birthday will receive a 25% bonus from the government. You can save up to £4000 a year and get a yearly bonus of up to £1000. The cash can be used towards a deposit on a first domestic worth up to £450000,or to save for ragged age: after your 60th birthday you can access all the savings tax-free.
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Source: theguardian.com