You can save up to £4,000 in the 2020/21 tax year.
Save money into a LISA and the government will give you a 25% bonus on the money you put in - that's a bonus of up to £1,000 a year! You need to have saved into your LISA for at least 12 months before using the money to buy your first home.
A bonus of up to £1,000 a year! But it doesn't stop there. Once you've bought your first home you can continue to save into the Lifetime ISA for retirement, and still receive the 25% government bonus up to age 50.
You can withdraw your money without charge if you’re using it to buy your first home under £450k and you’ve had the account for at least 12 months. If you’re saving for retirement you can take out your money once you’ve reached the age of 60. If you withdraw your money for any other reason or before you hit 60, the government will apply a withdrawal fee of 25% - but only on the amount withdrawn. The government has temporarily reduced the penalty to 20% for any funds withdrawn between 6th March 2020 and 5th April 2021.