Andy Egwim compares Lifetime ISA and SIPP for retirement savings. Lifetime ISA gives you a 25% government bonus on up to £4,000 yearly if you're 18-39, while SIPP lets you contribute up to £60,000 a year but has no age limit. Check your workplace pension first, as it counts toward your SIPP allowance.
Now the big question LifeStymizer vs. SIP. Which one is better? That's a big question I always get. Let's quickly walk through how the lifetime ISA and the SIP compare side by side. First, the age rules. You can only open a lifetime ISA if you are aged between 18 to 39. While a sip there's no lower age limit or higher age limit, they can keep contributing up to age 75. Next, how much can you put in? With the Lifetime ISA, the annual limit is £4,000 and the government has a 25% bonus giving you up to a thousand pounds of free money each year. With a SIP the limit is much higher, while all your annual pension allowance is 60,000 per tax year, depending on your income. But it's important to note that 60k annual allowance covers all your pension, including your NHS or workplace pension. So before you put more money into your seat, check how much you've already contributed elsewhere in your pension. Like the NHS pension.
