Latest news with #AmeliaMurray
RNZ News
7 days ago
- Entertainment
- RNZ News
Morning Report Essentials for Friday 30 May 2025
money education 35 minutes ago In today's episode, Parents who repeatedly refuse to send their children to school are more likely to be prosecuted as the government cracks down on truancy, Christchurch-based musician Amelia Murray, better known as Fazerdaze, was named Best Solo Artist and also took out the coveted Album of the Year award for her third release, Soft Power, big changes are coming to New Zealand's money as the Reserve Bank revealed photos of the new 10 cent coin that features the effigy of King Charles the third, we have our weekly political panel and we cross the Tasman for the latest from Kerry-Anne Walsh.
RNZ News
7 days ago
- Entertainment
- RNZ News
Fazerdaze takes out Album of the Year at Aotearoa Music Awards
Christchurch-based musician Amelia Murray, better known as Fazerdaze, was named Best Solo Artist and also took out the coveted Album of the Year award for her third release, Soft Power. Murray spoke to Paddy Gower. Tags: To embed this content on your own webpage, cut and paste the following: See terms of use.
Yahoo
20-05-2025
- Business
- Yahoo
Pros and cons of lifetime ISAs
Lifetimes ISAs, or LISAs as they're more commonly known, were introduced in 2017 to give UK residents between the ages of 18 and 39 the chance to save for their first home or retirement. According to HMRC, more than 1 million LISA accounts had been opened by 2023, with the total amount saved about £6.5bn. While COVID and the post-pandemic housing boom fuelled their use, more recently, there's been a decline in take-up, with higher interest rates and the cost-of-living crisis making home ownership difficult and saving for the long term even harder. 'According to data from HMRC, LISAs only accounted for 4% of total ISA subscriptions between 2022 and 2023,' says Amelia Murray, money expert at Be Clever With Your Cash. As a consequence, the government is currently debating their validity and looking into potential improvements. Read more: Martin Lewis issues lifetime ISA warning to MPs Brian Byrnes, head of personal finance at Moneybox, explains: 'The Treasury select committee launched a call for evidence on the lifetime ISA, looking to understand if the product's original design continues to meet the needs of young savers now and into the future. 'Despite being introduced in 2017, the LISA's core rules have remained unchanged, prompting the committee to examine whether it continues to effectively support first-time buyers and long-term savers.' With this in mind, we spoke to four financial experts to see whether investing in a LISA is still a good idea. What is a LISA? A LISA is a type of tax-free ISA that allows savers to deposit a maximum of £4,000 per tax year, on top of which the government will add a bonus of 25%, equating to an annual maximum of £1,000. After a minimum of one year, a LISA can then be used to purchase a first home, up to the value of £450,000, or, after the age of 60, be taken out as a pension. A LISA can only be opened between the ages of 18 and 39 but you can continue paying into it until the age of 50. Read more: What is the lifetime ISA? 'Importantly, if you opened a Lifetime ISA aged 18 and contributed the maximum £4,000 every tax year until you turned 50, you could earn up to £32,000 in government bonuses over time,' flags Byrnes. You can choose between a cash or a stocks & shares LISA but, whichever you go for, counts towards your £20,000-a-year ISA allowance. If you plan to use your LISA to buy a first home, you need to live there rather than use it as a buy-to-let investment. Who are they best suited for? As there are several restrictions on use, you need to carefully assess whether a LISA is the right product for you. Anna Yen, CFA at Moneylion, says they work for 'first-time buyers confident of purchasing their home (sub £450,000), basic-rate taxpayers, and young savers who can lock their money away long-term'. She flags that higher earners might prefer pension tax relief to LISA, as this can be up to 45%. In general, LISAs make a good choice for disciplined savers who are confident that they can afford to lock their savings away for the long term. What are the advantages? The main advantage of a LISA is that the government bumps up your savings by 25%, one of the highest savings rate currently available. '[Our] data shows that first-time buyers who use a lifetime ISA buy on average four years sooner than those who don't,' says Richard Dana, founder and CEO of savings and mortgage platform, Tembo Money. 'LISA's bonus and tax-free growth outperform pensions for basic-rate taxpayers. For example, there is no tax on withdrawals, whereas pensions attract income tax,' says Yen. '[They also] fall outside the purview of your estate.' It's also relatively simple to transfer lifetime ISAs between providers if you want to take advantage of a better rate. 'The 12-month time-limit starts from when the first LISA is initially opened, not from when it is transferred,' says Dana. What are the disadvantages? A major issue – and the one central to the current debate – is the withdrawal penalty. 'Savings made into a LISA can only be withdrawn without penalty when used to purchase a first home or accessed after age 60 for retirement,' says Byrnes. 'Withdrawals made for any other reason are considered unauthorised and subject to a 25% penalty, meaning savers not only lose the government bonus but also some of their own contributions.' This works out as the full government bonus, plus 6.25% of their own savings. While some sort of penalty will inevitably be retained, the present high level is dissuading savers who can't predict what the future holds: 'The current early withdrawal charge is harsh on those experiencing unexpected life events and means you could end up with less money than you put in,' adds Murray. Read more: What is an annuity? Everything to know before taking one out Another issue is the house price cap placed on buying a first home. In April 2025, the average London home cost £671,000, according to Rightmove, well above the £450,000 limit. And it's not just London. 'Data suggests that, unless the threshold changes, first time buyers (FTBs) will be priced out of buying a terrace house in 54 regions across the UK by the end of this parliament,' flags Murray. 'We recently surveyed more than 4,000 aspiring FTBs across the country, and 24% want to see the LISA price cap increased in line with house price growth; 23% want to see the LISA's penalty either removed or reduced,' says Byrnes. Another disadvantage is that the age limits are restrictive and exclude older first-time buyers; a trend that, with higher property prices, is only set to increase. Furthermore, it's important to understand the difference between a stocks & shares LISA and a cash one. 'Investment LISAs have higher charges than cash LISAs,' says Yen and these will also go down as well as up, in line with how your investments are faring on the stock market. What's the future of LISAs? The Treasury select committee is expected to announce its findings in the next few weeks and any suggested changes will be brought to parliament ahead of the autumn budget. 'The evidence and recommendations delivered so far range from simplifying the LISA's structure, to expanding its eligibility and increasing limits,' says Byrnes. 'There was much consensus on how the product could be future proofed for the next generation of young savers, including reducing the unauthorised withdrawal penalty and reviewing the property price cap so it reflects changing market conditions.' While LISAs have enabled hundreds of thousands of first-time buyers to purchase their own home, their impact on boosting people's retirement savings is less obvious and this is where the product may require a further re-think. Read more: How rising house prices can impact your finances 10 home upgrades that don't need planning permission What are green mortgages and are they the future?Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
Pros and cons of lifetime ISAs
Lifetimes ISAs, or LISAs as they're more commonly known, were introduced in 2017 to give UK residents between the ages of 18 and 39 the chance to save for their first home or retirement. According to HMRC, more than 1 million LISA accounts had been opened by 2023, with the total amount saved about £6.5bn. While COVID and the post-pandemic housing boom fuelled their use, more recently, there's been a decline in take-up, with higher interest rates and the cost-of-living crisis making home ownership difficult and saving for the long term even harder. 'According to data from HMRC, LISAs only accounted for 4% of total ISA subscriptions between 2022 and 2023,' says Amelia Murray, money expert at Be Clever With Your Cash. As a consequence, the government is currently debating their validity and looking into potential improvements. Read more: Martin Lewis issues lifetime ISA warning to MPs Brian Byrnes, head of personal finance at Moneybox, explains: 'The Treasury select committee launched a call for evidence on the lifetime ISA, looking to understand if the product's original design continues to meet the needs of young savers now and into the future. 'Despite being introduced in 2017, the LISA's core rules have remained unchanged, prompting the committee to examine whether it continues to effectively support first-time buyers and long-term savers.' With this in mind, we spoke to four financial experts to see whether investing in a LISA is still a good idea. What is a LISA? A LISA is a type of tax-free ISA that allows savers to deposit a maximum of £4,000 per tax year, on top of which the government will add a bonus of 25%, equating to an annual maximum of £1,000. After a minimum of one year, a LISA can then be used to purchase a first home, up to the value of £450,000, or, after the age of 60, be taken out as a pension. A LISA can only be opened between the ages of 18 and 39 but you can continue paying into it until the age of 50. Read more: What is the lifetime ISA? 'Importantly, if you opened a Lifetime ISA aged 18 and contributed the maximum £4,000 every tax year until you turned 50, you could earn up to £32,000 in government bonuses over time,' flags Byrnes. You can choose between a cash or a stocks & shares LISA but, whichever you go for, counts towards your £20,000-a-year ISA allowance. If you plan to use your LISA to buy a first home, you need to live there rather than use it as a buy-to-let investment. Who are they best suited for? As there are several restrictions on use, you need to carefully assess whether a LISA is the right product for you. Anna Yen, CFA at Moneylion, says they work for 'first-time buyers confident of purchasing their home (sub £450,000), basic-rate taxpayers, and young savers who can lock their money away long-term'. She flags that higher earners might prefer pension tax relief to LISA, as this can be up to 45%. In general, LISAs make a good choice for disciplined savers who are confident that they can afford to lock their savings away for the long term. What are the advantages? The main advantage of a LISA is that the government bumps up your savings by 25%, one of the highest savings rate currently available. '[Our] data shows that first-time buyers who use a lifetime ISA buy on average four years sooner than those who don't,' says Richard Dana, founder and CEO of savings and mortgage platform, Tembo Money. 'LISA's bonus and tax-free growth outperform pensions for basic-rate taxpayers. For example, there is no tax on withdrawals, whereas pensions attract income tax,' says Yen. '[They also] fall outside the purview of your estate.' It's also relatively simple to transfer lifetime ISAs between providers if you want to take advantage of a better rate. 'The 12-month time-limit starts from when the first LISA is initially opened, not from when it is transferred,' says Dana. What are the disadvantages? A major issue – and the one central to the current debate – is the withdrawal penalty. 'Savings made into a LISA can only be withdrawn without penalty when used to purchase a first home or accessed after age 60 for retirement,' says Byrnes. 'Withdrawals made for any other reason are considered unauthorised and subject to a 25% penalty, meaning savers not only lose the government bonus but also some of their own contributions.' This works out as the full government bonus, plus 6.25% of their own savings. While some sort of penalty will inevitably be retained, the present high level is dissuading savers who can't predict what the future holds: 'The current early withdrawal charge is harsh on those experiencing unexpected life events and means you could end up with less money than you put in,' adds Murray. Read more: What is an annuity? Everything to know before taking one out Another issue is the house price cap placed on buying a first home. In April 2025, the average London home cost £671,000, according to Rightmove, well above the £450,000 limit. And it's not just London. 'Data suggests that, unless the threshold changes, first time buyers (FTBs) will be priced out of buying a terrace house in 54 regions across the UK by the end of this parliament,' flags Murray. 'We recently surveyed more than 4,000 aspiring FTBs across the country, and 24% want to see the LISA price cap increased in line with house price growth; 23% want to see the LISA's penalty either removed or reduced,' says Byrnes. Another disadvantage is that the age limits are restrictive and exclude older first-time buyers; a trend that, with higher property prices, is only set to increase. Furthermore, it's important to understand the difference between a stocks & shares LISA and a cash one. 'Investment LISAs have higher charges than cash LISAs,' says Yen and these will also go down as well as up, in line with how your investments are faring on the stock market. What's the future of LISAs? The Treasury select committee is expected to announce its findings in the next few weeks and any suggested changes will be brought to parliament ahead of the autumn budget. 'The evidence and recommendations delivered so far range from simplifying the LISA's structure, to expanding its eligibility and increasing limits,' says Byrnes. 'There was much consensus on how the product could be future proofed for the next generation of young savers, including reducing the unauthorised withdrawal penalty and reviewing the property price cap so it reflects changing market conditions.' While LISAs have enabled hundreds of thousands of first-time buyers to purchase their own home, their impact on boosting people's retirement savings is less obvious and this is where the product may require a further re-think. Read more: How rising house prices can impact your finances 10 home upgrades that don't need planning permission What are green mortgages and are they the future?Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
