Young savers miss out on £500+ yearly by ignoring this key account
A new survey reveals that 90% of young people are actively saving money, setting aside an average of £208 each month and amassing £6,510 in total. However, many are unaware of the benefits of a Lifetime ISA (LISA), with 65% of adults aged 18-28 yet to open one, missing out on a 25% government bonus.
Young people are dipping into their savings an average of once every two months to cover unexpected payments. Starting good saving habits in one's 20s and 30s can significantly improve quality of life in older age. The average house deposit young people estimate they need is over £42,000.
Despite the potential benefits, 30% of adults aged 18-28 have not heard of the Lifetime ISA. This scheme offers a way to claim up to £1,000 annually from the government. Banks and providers such as Moneybox, Plum, and Tembo Money offer LISAs, usually via app or online. Those without a LISA are missing out on an average of £512.77 from the government per year.
The price of food (33%) and low income (29%) are the biggest barriers to saving more money. Feeling overwhelmed by the number of savings options available is also a challenge, with 57% of young people expressing this concern. If opened at 18 and contributed to annually, a LISA could earn up to £32,000 of free money by age 50.
With young people actively saving and aiming for significant milestones like home ownership, understanding and utilising the Lifetime ISA could provide a substantial boost. Awareness and simplicity of savings options are key to helping young people make the most of their money.
Read also:
- Executive from significant German automobile corporation advocates for a truthful assessment of transition toward electric vehicles
- Crisis in a neighboring nation: immediate cheese withdrawal at Rewe & Co, resulting in two fatalities.
- United Kingdom Christians Voice Opposition to Assisted Dying Legislation
- Democrats are subtly dismantling the Affordable Care Act. Here's the breakdown
