A Lifetime ISA may not be suitable for everyone
You must be 18-39 years old to open a Lifetime ISA and you can pay in up to £4,000 each tax year, as part of your overall £20,000 ISA allowance. You will incur a 25% government charge on any money you withdraw before you are 60, unless you are using it to buy your first home or are terminally ill, therefore you may get back less than you paid in. You may also incur this charge if you transfer your Lifetime ISA to another type of account. Tax allowances and the tax benefits of Lifetime ISAs could change. If you save in a Lifetime ISA rather than a pension scheme, you may lose the benefit of your employer’s contributions. Saving in a Lifetime ISA may affect your current and future entitlement to means tested benefits. Please seek independent financial advice if you are unsure whether a Lifetime ISA is suitable for you.