An ISA for buying your first home or retirement, with a 25% government bonus.
LISA (Lifetime ISA)
An ISA for buying your first home or retirement, with a 25% government bonus.
By Scrimpr
Updated 18 Jan 2026 What is a Lifetime ISA?
A Lifetime ISA (LISA) is a type of ISA designed for two things: buying your first home or saving for retirement. The government adds 25% to whatever you put in, up to a maximum bonus of £1,000 per year.
How much can you put in a LISA?
Up to £4,000 per tax year. This counts towards your overall ISA allowance of £20,000.
You put in £4,000, the government adds £1,000. That’s the maximum bonus you can get each year.
Who can open a LISA?
You must be aged 18 to 39 to open one. You can keep paying in until you turn 50.
When can you withdraw from a LISA?
Without penalty, only for:
- Buying your first home (up to £450,000)
- After you turn 60
If you withdraw for any other reason, you lose 25% of what you take out. This wipes out the bonus and takes some of your own money too.
LISA vs pension
Both get government top-ups. A SIPP (a type of personal pension) gives tax relief on contributions but you can’t touch it until 55. A LISA lets you access money earlier for a first home, but the penalty for other withdrawals is harsh.
Scrimpr’s ISA comparison covers more platforms than any other UK guide.
Compare ISA Platforms →Key points about Lifetime ISAs
- 25% government bonus, up to £1,000 per year
- For first homes or retirement. Withdraw early and you lose 25%
- Must open before age 40. Can pay in until 50
More information
Scrimpr links to official sources so you can verify what you’ve learned.
