Pay in up to £4,000 a year and the government adds 25% free, up to £1,000 a year. See what your LISA could be worth.
Pay in up to £4,000 a year and the government tops it up by 25%, up to £1,000 a year of free money. You can open a LISA between 18 and 39, pay in (and earn the bonus) until 50, and use it without penalty for a first home (up to £450,000) or from age 60.
The catch: take it out for any other reason and there's a 25% penalty on the whole amount. Because that applies to your contributions and the bonus, you get back less than you put in so only use a LISA for money you'll put toward a first home or retirement.
Sources: gov.uk (Lifetime ISA, 2026/27). Illustrative; assumes annual contributions and a constant return, and that you stay within the £4,000 LISA limit. Check current limits at gov.uk.
Illustrative only, not financial or tax advice. Assumes you remain eligible, contribute within the £4,000 LISA limit, and that returns are constant (they aren't). The bonus stops at age 50; the early-withdrawal penalty is 25%. A LISA can affect access to some means-tested benefits. Always check the current rules at gov.uk or speak to a qualified adviser.
Pairs with Compound Growth and ISA vs SIPP.