A Lifetime Individual Savings Account, or LISA for short, is a super helpful tool for those who are first-time home buyers between the ages of 18 and 39, or for those who are looking to save for retirement. It's a tax-free savings account where your employees can stash away up to £4,000 each year.
The best part? The government gives a 25% bonus on the money put in, up to £1,000 a year. That's free money! Just remember, your employees need to have saved into their LISA for at least a year before they can use the money to buy their first home.
If they're ready to buy their first home (for £450,000 or less), and they've had the account for at least a year, they can take out their money without any charges. If they're saving for retirement, they can access their money once they're 60.*
If they need to withdraw their money for any other reason or before they turn 60, the government will apply a 25% withdrawal fee, but only on the amount taken out.
*Different fund managers can process sales at different speeds, and it typically takes around 7 working days overall for all the funds to reach us. Withdrawing for a first house purchase can take up to 10 working days to reach us.