Project your LISA savings including the 25% government bonus for first home purchase or retirement.
Must be 18-39 to open, can contribute until 50
Maximum \u00a34,000 per year
The government adds 25% to your contributions, up to \u00a31,000 bonus per year.
Projected LISA Value
£66,034
After 10 years
Your Contributions
£40,000
Gov. Bonus
£10,000
Growth
£16,034
Total Value
£66,034
Early Withdrawal Penalty
If withdrawn early (not for first home or after 60): 25% charge of £16,508 would apply, leaving you with £49,525.
| Year | Age | Contributed | Bonus | Balance |
|---|---|---|---|---|
| 1 | 26 | £4,000 | £1,000 | £5,250 |
| 2 | 27 | £8,000 | £2,000 | £10,763 |
| 3 | 28 | £12,000 | £3,000 | £16,551 |
| 4 | 29 | £16,000 | £4,000 | £22,628 |
| 5 | 30 | £20,000 | £5,000 | £29,010 |
| 8 | 33 | £32,000 | £8,000 | £50,133 |
| 9 | 34 | £36,000 | £9,000 | £57,889 |
| 10 | 35 | £40,000 | £10,000 | £66,034 |
The Lifetime ISA was introduced in April 2017 to help younger people save for their first home or retirement. The 25% government bonus is one of the most generous savings incentives available, effectively giving you an immediate 25% return on your contributions before any investment growth.
To use your LISA for a property purchase, the property must cost \u00a3450,000 or less, you must be a first-time buyer, and the account must have been open for at least 12 months. The funds are paid directly to your conveyancer on completion. If you are buying with a partner who also has a LISA, you can both use your accounts towards the same property.
If you do not use your LISA for a home purchase, you can withdraw the funds penalty-free from age 60. This makes it a useful complement to a workplace pension, particularly for basic rate taxpayers who receive the same effective tax benefit from both. The flexibility to use it for either purpose makes the LISA a versatile savings tool.
Building a savings habit is one of the most effective ways to improve your financial wellbeing. You may also find our Compound Interest Savings Calculator useful for related calculations.
For a broader view of your finances, try the Compound Interest Calculator or the Take-Home Pay Calculator. All of our calculators are free to use and updated for the 2026/27 tax year where applicable.
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