Spring Budget: Lifetime ISA
George Osborne reiterated throughout his Budget statement that this was a Budget putting the next generation first, making Britain fit for the future.
As part of this, he wants to encourage the next generation to save for their future. While no major changes were made to the pension regime he did introduce the new lifetime ISA.
From 1 April 2017 anyone between the ages of 18 and 40 can open a lifetime ISA and for any savings put in before your 50th birthday for each £4 saved the government will contribute an additional £1, up to a maximum of £1,000 per year.
After your 60th birthday, the savings can be taken out of the ISA tax-free. Money can be withdrawn from the ISA at any time prior to this but the government bonus will be lost and there will be a 5% charge on the withdrawal.
The total amount that can be saved into any ISA will also be increased from £15,240 to £20,000 from 1 April 2017.