Martin Lewis urgent call for anyone born between 1986 and 2008 'soon as possible'

Martin Lewis urgent call for anyone born between 1986 and 2008 'soon as possible' 'So one reason for putting a pound in as soon as possible is you get that clock ticking' Martin Lewis has given an urgent warning to anyone born between 1986 and 2008 - get a quid on! The personal finance expert spoke out after the Andy Burnham government made a key change in the budget. Chancellor John Healey announced major updates to the Lifetime ISA (LISA), including a reduction to the withdrawal penalty for expensive properties and an eventual plan to replace the scheme with a new First-Time Buyer ISA. Mr Lewis said in a new video on Facebook: “If you’re aged 18 to 39 and you don’t have a lifetime ISA, I’d strongly suggest you get a quid in one now, even if you already own a home. “And the reason for this has all got even stronger since the budget.” The Lifetime ISA will close to new applicants on April 6, 2029, when the new First-Time Buyer ISA launches. If a person uses theirr LISA to buy a first home that exceeds the £450,000 price cap, the withdrawal charge has been reduced from 25% to 20%. This means they get back the original savings plus interest, losing only the government bonus instead of a portion of your own money. A Lifetime ISA (LISA) is a UK government-backed savings or investment account designed to help people aged 18 to 39 save for their first home or for retirement. Mr Lewis explained: “We now know that in April 2029, the Lifetime ISA will be replaced by the first-time buyer ISA. But as long as you’ve opened one before then, you can still use and get the bonus on the Lifetime ISA after that. “Now, with the Lifetime ISA, you can put up to four grand a year, and you get 25% added on top. So that’s up to £1,000 free each year and that can be used towards a first time buy a property under £450,000 or towards saving for your retirement. You can take the money out at age 60 with no penalty. However, there is a rule with the Lifetime ISA that you can’t get the bonus as a first-time buyer unless you’ve had the LISA open for a year. “ Ensure our latest money headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings He said this means: “So one reason for putting a pound in as soon as possible is you get that clock ticking. Even if you’re not ready to buy now, as long as it’s more than a year away, once you are, then you can just dunk the £4,000 in and you get the £1,000 bonus straight away and you could buy with it.” Mr Lewis added that if someone is buying a property over £450,000, they won’t face a penalty to get their money out for the deposit. He added: “You won’t get the bonus, but you’ll get back what you put in plus interest. So, the risk of having a lifetime ISA is less. If you do get a lifetime ISA and you want to use the first-time buyer ISA, you will be to get the bonus on both. You just won’t be able to contribute to both in the same tax year. “So, you can see why it’s worth having if you’re going to be a first-time buyer.” For homeowners, Mr Lewis said: “I generally put pension saving as better for retirement than lifetime ISAs. For some people, especially basic rate self-employed people, the lifetime ISA can be a decent option. And as the new ISA that’s replacing it doesn’t have a retirement saving option, just in case it’s good for you in 2030, 7, you may as well put a pound in now so that you have the facility then to save in a lifetime ISA for your retirement if it becomes worthwhile. And that is just the tip of the iceberg.”