Who can open one?

You can open a LISA between the ages of 18 and 39 and continue contributing until age 50. Funds can be withdrawn tax- and penalty-free toward a first home (up to £450,000) or from age 60.

Things to watch

Withdrawals outside the first-home or post-60 rules incur a 25% government charge, which gives back more than just the bonus. The £4,000 LISA allowance counts toward your overall £20,000 ISA allowance for the tax year.

• £4,000 annual contribution cap, plus 25% government bonus
• Eligible for first-home purchases up to £450,000
• Penalty-free withdrawal at age 60 or later
• Counts toward your overall £20,000 ISA allowance

How Optiml uses your LISA

Optiml treats your LISA as an ISA wrapper that's locked until age 60. The model accounts for the government bonus, the early-withdrawal penalty, and the fact that LISA funds are tax-free for life when accessed at retirement age.