Martin Lewis urges everyone born in these years to put £1 in account now
Finance expert Martin Lewis is advising individuals born between September 20, 1984, and September 20, 1986, to deposit £1 into an account immediately. The money-saving whizz is calling on anyone aged between 18 and 40 to take action now to secure a potential £1,000 bonus from the government.
Unbeknownst to many, there's a government-backed savings scheme known as a Lifetime ISA (LISA) that aids in purchasing homes valued up to £450,000. Moreover, if you don't use it for buying a house, the funds can be accessed at age 60 for retirement purposes.
Martin emphasises that anyone under 40, or parents with children over 18, should invest £1 in a LISA right away to keep the option of receiving a free £1,000 from the government open, reports The Express.
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Speaking on his latest episode of The Martin Lewis Podcast available on BBC Sounds, Spotify, and Apple Music, Martin stated: "Let me be very plain to anybody listening, anybody who has never bought a home, is aged under 40, and this includes anyone who has children aged over 18. I would 100% recommend that you put £1 in a LISA now."
He explains the urgency by noting, "The reason I say this, is the lifetime ISA, to get the bonus as a first time buyer, you have to have had the product open for a year or you can't get the bonus. So by putting a pound in now, even if you don't use it, even if you don't intend to use it, you've got the clock ticking.
"So that if in a year's time you think 'I'm gonna buy a house and it's only £440,000, you've got your £1 in a lifetime ISA, you add £4,000 and the next day you're eligible for the £1,000 bonus.
"You might say to me, what happens if I never buy a house? There's a 6.25 percent penalty, so you lose 6 and a quarter pence. I would say that's a decent risk, to lose 6 and a quarter pence to have the opportunity to gain £1,000 if you need it. So before we go anywhere I would definitely open a LISA for £1."