![\"Young](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/12\/1_Young-couple-sitting-on-couch-discussing-finances-feeling-concerned-about-bills.jpg\")
A LISA can be a crucial help for young people to get on the housing ladder(Image: LordHenriVoton via Getty Images)<\/p>\nThe money expert has warned of possible changes to the LISA schemeA LISA can be a crucial help for young people to get on the housing ladder(Image: LordHenriVoton via Getty Images)<\/p>\n
Martin Lewis is encouraging adults under 39 to deposit just \u00a31 into an account immediately \u2013 as it could unlock significant savings benefits down the line. During the Budget<\/a>, Chancellor Rachel Reeves<\/a> revealed plans for a consultation on potentially abolishing Lifetime ISA (LISA) accounts and introducing an alternative product in their place.<\/p>\n The LISA permits anyone between 18 and 39 to deposit funds into a tax-free savings account for purchasing their first property, with contributions receiving a generous 25 per cent government bonus. Those who don’t utilise it for property purchase can convert it into a retirement fund accessible from age 50.<\/p>\n Nevertheless, the LISA has faced criticism over withdrawal charges, particularly as the property purchase ceiling hasn’t matched the pace of rising house prices.<\/p>\n During The Martin Lewis<\/a> Money Show Live on ITV1 and ITVx on Tuesday 2 December, the financial guru addressed a query about LISAs following the announcement of potential reforms. He advised viewers in a comparable age category to establish a LISA with a \u00a31 deposit immediately, reports the Express<\/a>.<\/p>\n An audience member in his ‘early 30s’ who already owned property questioned Martin: “Is it still worth me continuing to add to my Lifetime ISA given the speculation about it changing soon. So the only reason you’d do it is for retirement savings because you can’t get the bonus twice.”<\/p>\n Martin then verified he was a PAYE worker already contributing the maximum to his pension, before explaining: “It’s better than saving in a normal savings account because you get a 25 per cent bonus on top. I think what I’d say to you is we’re in a limbo stage. I think it would be unthinkable for them to close the Lifetime ISA and not give you the bonus aged 50. I think the worst is they’d stop you putting any more money in.”<\/p>\n He added: “So, what I would say, funny I’ve just thought of this as I’m talking now, what I’d say to anybody of this age, even if you’ve bought a house and you haven’t got a Lifetime ISA, put \u00a31 in one now, just in case they do close it down and later you wanted to use it for retirement. You’ve got that facility.”<\/p>\n He continued: “But I’d probably, and the Chancellor would hate me saying it, I’d sort of be in limbo at the moment and wait and see what happens in that consultation before I put too much more money in, because we don’t know where we’re going.”<\/p>\n Martin added his prediction: “But my guess is they’ll keep it open for people like you who’ve opened one, but not allow anybody new to have the same situation that you’ve got.”<\/p>\n Responding to news of the LISA consultation, Carol Knight, CEO of The Investing and Saving Alliance, remarked: “This is a moment for sensible reform of the Lifetime ISA, not a rush to scrap it. LISAs have helped a generation of first-time buyers save for a deposit and, crucially, given many – particularly the self-employed – a simple, engaging way to build retirement savings.<\/p>\n She added: “As the government consults on a new ISA for homebuyers, it must protect the strengths of the LISA and give clarity and fair treatment to existing savers – not dismantle a product that is already delivering for those trying to save for both a first home and later life.”<\/p>\n![\"Martin](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/12\/0_Martin-Lewis.jpg\")
Lewis is urging people to put \u00a31 in the account as soon as possible(Image: ITVX)<\/p>\n