From April 2017, if you are aged between 18 and 40 you will be able to take advantage of the government’s new savings initiative, the Lifetime Individual Savings Accounts or LISA. With a LISA, you will be able to save up to £4,000 per year, until you are 50.

Each year the government will add in another 25% of what you have paid into your savings. So if you pay in the annual maximum of £4,000 you’ll see your savings increase to £5,000 once the government bonus has been added.

You can only keep the government bonus if you use your LISA as a way to save for a house or a pension. As long as you are a first time buyer, are using the money to buy a house, and the property is under £450,000, you can withdraw the money before age 60. After age 60 you can withdraw the money when you like and use it as a top up to your pension.

From April 2017 your total ISA allowance, including any savings in a LISA, will be £20,000. You can find out more information at

www.gov.uk/government/publications/lifetime-isa-explained