If you’re thinking of using a Cash Lifetime ISA to save towards retirement, you should consider:
- when you plan to retire
- what else you’re doing to save for retirement (for example, paying into a pension); and
- whether the money you save in a Cash Lifetime ISA will be enough to meet your needs when you retire.
Lifetime ISAs are available as a Cash or a Stocks and Shares option. Skipton offers a Cash Lifetime ISA only. Any time your circumstances change you should review whether the type of Lifetime ISA you have is still right for you.
A Cash Lifetime ISA may not be the best option for retirement savings. You might wish to consider investing in a pension, a Stocks and Shares Lifetime ISA, or both. Saving for retirement is usually a long-term commitment. Investing could give you a better return than a savings account over the long-term (more than five years). But you should be aware that the value of your investment can go down as well as up and you may get back less than you invested.
If you’re employed, you should consider your tax position and whether a workplace pension scheme might be better for you. If you choose to save in a Lifetime ISA instead of a private workplace pension scheme:
- you may lose the benefit of any employer contributions to that scheme; and
- it could affect any means-tested benefits you may have been entitled to, now or in the future (as these depend on the amount of income and capital you have, which includes savings).
This information isn’t advice. You should seek financial advice if you’re thinking of changing your existing pension plans to invest in a Lifetime ISA. If you don’t understand the pension and tax rules when you make changes, you may not make the most of your retirement savings. This could mean you don’t have enough money to support you when you’re retired.