Martin Lewis urgent call for anyone born between 1986 and 2008 'soon as possible'

Detailed summary

'So one reason for putting a pound in as soon as possible is you get that clock ticking'

Martin Lewis has given an urgent warning to anyone born between 1986 and 2008 - get a quid on! The personal finance expert spoke out after the Andy Burnham government made a key change in the budget.

Chancellor John Healey announced major updates to the Lifetime ISA (LISA), including a reduction to the withdrawal penalty for expensive properties and an eventual plan to replace the scheme with a new First-Time Buyer ISA.

Mr Lewis said in a new video on Facebook: “If you’re aged 18 to 39 and you don’t have a lifetime ISA, I’d strongly suggest you get a quid in one now, even if you already own a home.

The Lifetime ISA will close to new applicants on April 6, 2029, when the new First-Time Buyer ISA launches. If a person uses theirr LISA to buy a first home that exceeds the £450,000 price cap, the withdrawal charge has been reduced from 25% to 20%. This means they get back the original savings plus interest, losing only the government bonus instead of a portion of your own money.

A Lifetime ISA (LISA) is a UK government-backed savings or investment account designed to help people aged 18 to 39 save for their first home or for retirement.

Mr Lewis explained: “We now know that in April 2029, the Lifetime ISA will be replaced by the first-time buyer ISA. But as long as you’ve opened one before then, you can still use and get the bonus on the Lifetime ISA after that.

“Now, with the Lifetime ISA, you can put up to four grand a year, and you get 25% added on top. So that’s up to £1,000 free each year and that can be used towards a first time buy a property under £450,000 or towards saving for your retirement. You can take the money out at age 60 with no penalty. However, there is a rule with the Lifetime ISA that you can’t get the bonus as a first-time buyer unless you’ve had the LISA open for a year. “

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He said this means: “So one reason for putting a pound in as soon as…

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