Reply to: Lifetime ISA

[unemployed]

Yep. Somehow the extra £1000s will all end up in the pockets of BTL landlords.

They have more to worry about when georgie boy needs some more tax

[SueEllen]

... and that is yet another sign that this is what will become of "pensions" - he was going to pull the trigger on total removal of pension relief (it's only fair!), but decided to hold the horses until referendum is over, so limited Lifetime ISA to very small amount for under 40s who got no spare money to save anyway...

Under 40s put very little money into pensions anyway.

It's when people hit middle age e.g. around 40 they realise they are going to get old and start saving.

Gidiot is quite clever on this one as when future chancellors remove pension relief from all the current under 40 age cohort they won't be able to complain.

[Andy2]

Is this disguised "helicopter drop" money designed to prop up the rampant property market?

UK economy is based on properties. We don't make stuff we sell each other properties.

[AtW]

Is this disguised "helicopter drop" money designed to prop up the rampant property market?

This will be "helicopter drop" money into Gidiots bottomless pockets...

[AtW]

£5k per year is probably not far off what regular folk put in their pensions?

0 won't be far off...

[AtW]

"And we’re going to consult with the industry on whether, like the American 401K, you can return money to the account to reclaim the bonus – so it is both generous and completely flexible."

... and that is yet another sign that this is what will become of "pensions" - he was going to pull the trigger on total removal of pension relief (it's only fair!), but decided to hold the horses until referendum is over, so limited Lifetime ISA to very small amount for under 40s who got no spare money to save anyway...

[PurpleGorilla]

I will be 1 month and 5 days too old.

Whats the magic date?

[VectraMan]

Is this disguised "helicopter drop" money designed to prop up the rampant property market?

Yep. Somehow the extra £1000s will all end up in the pockets of BTL landlords.

[DimPrawn]

Is this disguised "helicopter drop" money designed to prop up the rampant property market?

[VectraMan]

Yep - if you want to help your adult kids buy a house, this sounds like a good way of going about it.

Not as good a way as dying.

If you use this to buy a house at a sensible age you're going to miss out on a couple of decades of free money. So surely this means you're better off not buying a house with it.

I'm too old anyway.

[d000hg]

£5k per year is probably not far off what regular folk put in their pensions?

[suityou01]

I wonder, given our whinger in chief Mauve Monkey has outed himself as being 38, whether he will be too old to take out one of these when they are implemented. The irony would be ironic.

I will be 1 month and 5 days too old.

[mudskipper]

Take the money out for the wrong reasons and, as well as taking away all the free money and interest, Gideon will also take a 5% "handling charge" from your capital. Nice little earner as the economy crumbles and people are forced to fall back on their reserves

https://www.gov.uk/government/upload..._explained.pdf

In the speech, he did say that they were looking at refunding the penalty if you put the money back in at a later date.

Given the alternative of a 'pension' account where you simply cannot access the money, it seems like a move in the right direction.

Edit: transcript here - he said refunding the bonus, not the penalty.

http://www.mirror.co.uk/news/uk-news...speech-7568185

"And we’re going to consult with the industry on whether, like the American 401K, you can return money to the account to reclaim the bonus – so it is both generous and completely flexible."

[sal]

It's essentially a subsidy to the banks. It will be eaten by the approaching negative interest rates on deposits, when we will have to pay the banks for the privilege.

[NickFitz]

Take the money out for the wrong reasons and, as well as taking away all the free money and interest, Gideon will also take a 5% "handling charge" from your capital. Nice little earner as the economy crumbles and people are forced to fall back on their reserves

https://www.gov.uk/government/upload..._explained.pdf