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It's sensible to put savings away, if you can, and even if you only just get in before your 40th birthday, if you put £4k in every year that's £20k from the government by the time you're 60. Nice little £100k lump sum.
Ben689908-
Good point.
Assuming inflation remains stable, that's would probably give you a solid 8 months in a retirement home. Nice little stay.
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It's sensible to put savings away
You have to be careful though - if you are putting away large amounts of cash savings for retirement you should have first
- maxed out your pension allowance (somewhat age depending)
- maxed out your S&S ISA allowance
- paid off any expensive debt
What you describe is for people who are so rich they just don't know what to do with their money, and are happy for their capital to be munched by inflation (unless you were assuming it was backed by S&S, in which case your return is guaranteed, but in all probability it will be better than what you'd get with a cash savings in interest rate.)
- maxed out your pension allowance (somewhat age depending)
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But if you’re a high rate tax payer, isn’t it better to put that into a pension (40% easily beats 25%)? If you have a salary sacrifice scheme you get national insurance relief too.
hugo7
Howard
Soul
Lifetime ISA is pretty non-standard to be fair, but yes, as some kind of not-quite-pension like thing it's interesting.
Instant-ish access stocks and shares ISAs like nutmeg are what you want but you need to have been feeding them for the last fifteen years