With the new Lifetime ISA available from April 2017, you can save up to 4000 a year and receive a government bonus of 25%, thats up to 1000 a year. You can use some or all your of the money to buy your first home, Or alternatively keep it until you’re 60 for retirement.
Buying your First Home
The money can be used towards a deposit on your first home up to the value of 450,000. As the accounts are per person and not per home two first time buyers can both receive the bonus when buying a home together.
Once you turn 60, you can withdraw the funds tax free. You can withdraw the money before turning 60 but you will lose the government bonus plus interest or growth on this, and a 5% charge will be payable.