Martin Lewis explains how 18–39-year-olds can get free £1k per year

Charlie Herbert

Sounds nice doesn’t it?

Martin Lewis has revealed how those aged between 18 and 39-years-old can get up to £1,000 per year from the government.

Speaking on the Martin Lewis Money Show, the financial expert explained the benefits of a Lifetime ISA, also known as a LISA.

LISAs are a government scheme that pays savers up to £1,000 a year for a home or to go towards their retirement fund.

If you have a LISA you can put away up to £4,000 each year until the age of 50, and the government will give you a 25 percent bonus on top of this.

Lifetime ISA accounts are open to anyone aged 18-39 but differ from Help to Buy ISAs in that they have to have been open for a year in order to get the 25% bonus.

All in all it means that over the lifetime of an account you could get up to £30,000 of government money, as long as you pocketed the maximum £1,000 bonus each year.

Big Briefing continued 2/3🧵

Martin breaks down his ‘if you can, you should’ rules 🗣

💳 Paying off expensive debt
🏦 Lifetime ISAs
💰 Regular savings accounts
👂And a little note on investing

All info correct at the time of broadcast.#MartinLewis pic.twitter.com/ebtWuXTrdQ

— The Martin Lewis Money Show Live (@itvMLshow) January 25, 2023

“A Lifetime ISA can be opened between age 18 and 39,” Martin said.

“As a first time buyer the state will give you a 25 percent boost on money you put in.

“You can put up to £4,000 a year [in] so that’s up to a grand year bonus from the state.”

However, Martin warned that if you take out your savings before you reach 60 or for any reason other than buying a house or, you’ll lose your bonus and pay a penalty.

“Lifetime ISAs have a 6.25 percent withdrawal penalty if you’re not using them to buy a qualifying house or you’re aged under 60 when you take the money out,” he said.

“So, you only want to put them (money) in if you’re definitely going to be buying a qualifying house.

“And you have to have had them for a year before you can get the bonus.”

Bare in minds though that however much you put away in a LISA will count towards your overall yearly ISA allowance of £20,000. But if you’re saving for a first home, then no other regular savings account comes close to the 25 percent interest rate of a LISA.

You can find out more information about LISAs on the government website here.

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