New ‘Lifetime ISA’ for Savers

BUDGET 2016: Pension for the under 40s could disappear as Chancellor overhauls savings market, paving the way for pension ISAs in the future

Emma Simon 16 March, 2016 | 4:51PM

The Chancellor has said one of the main aims of this Budget was to help more people save support the next generation. To this end he announced plans to:

  • Launch a new ‘Lifetime Isa’ for the under 40s
  • Increase the ISA limit to £20,000
  • Launch a new Help to Save scheme for those on lower income
  • Scrap tax on savings for the majority of UK savers

 

In an unexpected move George Osborne announced than from next year, April 2017, those aged under 40 would be able to take out a new ‘Lifetime ISA’, which would offer the tax benefit of a pension for basic-rate taxpayers but the flexibility of an ISA.

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About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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