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  • 💡 Smart Money Move: The Lifetime ISA (LISA) — Explained & Personalised

💡 Smart Money Move: The Lifetime ISA (LISA) — Explained & Personalised

Author

Kyaw Saw
July 28, 2025

If you're aged 18–39, planning to buy your first home or build wealth for retirement, the Lifetime ISA (LISA) is an underrated gem that gives you £1,000 free every year just for saving.

🏡 What is a Lifetime ISA?

  • Save up to £4,000 per year

  • Get a 25% government bonus (up to £1,000/year)

  • Use it to:

    • Buy your first home (up to £450k)

    • Or access it penalty-free at 60+ for retirement

⏳ Your LISA must be open for at least 12 months before it can be used to buy a home.

🧠 How I Used It — My Strategy

I bought my first house using a Cash LISA from Skipton Building Society — simple and safe.

As soon as that was done, I opened a Stocks & Shares LISA via Moneybox. Why? Because:

  • I already had a GIA with them, so it was an easy switch

  • I’m still eligible for the 25% government bonus

  • Even if the market drops, that bonus helps cushion the blow

📉 Let’s say my investments are down 10% — but the +25% bonus means I’m still up overall. Long-term, it’s a no-brainer.

💷 LISA at a Glance:

Feature

Detail

Max contribution

£4,000/year

Max bonus

£33,000 (from age 18–49)

Max property value

£450,000

Use for

First home or retirement (age 60+)

Withdrawal penalty

25% if not for home or retirement

Bonus payment frequency

Monthly

Eligibility

UK resident aged 18–39

Investment option?

Yes — via Stocks & Shares LISA

Time until usable for home

12 months from opening

🏦 Platforms You Can Use

✅ Cash LISAs

Great for short-term goals (home purchase in next 1–5 years):

  • Moneybox (also offers S&S LISA)

  • Skipton Building Society (my first LISA)

  • Paragon Bank

  • Tembo

  • Bath Building Society

  • Nottingham Building Society

📈 Stocks & Shares LISAs

Better for long-term investing (retirement or delayed home buying):

  • Moneybox – Easy app experience; my current provider

  • AJ Bell – Low fees, great for confident DIY investors

  • Nutmeg – Fully managed, robo-advisor style

  • Hargreaves Lansdown (H&L) – Well-established, wide fund choice

🧪 Tip: You can transfer funds from a GIA or ISA into a LISA on many platforms.

🔁 Real-World Strategy Recap

  • 💼 Use Cash LISA if you're buying in 1–5 years

  • 📈 Use S&S LISA to ride long-term market growth (with a bonus safety net)

  • 🧮 If you start early and max it out, you can get up to £33,000 in bonus money

📌 TL;DR
If you’re under 40 and not using a LISA, you might be leaving free money on the table. I used mine to buy a house — now I’m using it to build wealth.

📘 This is just one of many tips covered in my upcoming book:
Beyond the Stethoscope: Smart Finance for Junior Doctors —
a practical, no-fluff guide to money, investing, and side hustles for UK doctors.