ADVERTORIAL GOVERNMENT MONEY — ARE YOU?
87% OF OFFICERS ARE MISSING OUT ON £32,000 IN FREE
BY ANNETTE PETCHEY, CEO, POLICE FRIENDLY Changes are
equivalent to nearly a year’s salary for a young officer. Added to this, and also overlooked, is that a LISA can be supported by family. The account holder must open the account themselves, but contributions from others still qualify for the 25 per cent government bonus, making it a very efficient way for the “Bank of Mum and Dad” or “Bank of Nan and Grandad” to gift to their children or grandchildren. At a time when the average first home
costs around £290,000, higher still in London and the South East, it’s perhaps astonishing that our Police Family Finance Index shows just 13 per cent of those eligible for a Lifetime ISA have one.
For many serving police officers, financial planning falls low on the list of priorities. Long shifts, unpredictable hours and the mental demands of the role don’t leave much space for researching savings products or navigating complex financial decisions.
AN OVERLOOKED HELPING HAND One of the most generous, yet hugely underused, tools is the Lifetime ISA (LISA). Designed to help people either buy their first home or build longer-term retirement savings, it offers a 25 per cent tax-free government bonus of up to £1,000 a year on contributions. Fully utilised, this could amount to £32,000 in tax-free cash for savers over the life of their LISA – or
NOT JUST FOR A FIRST HOME When it comes to retirement savings, it is a widely held view that the police pension will do all the heavy lifting in later life. While that might be true for the day-to-day essentials, if some of the nicer things in retirement are wanted, such as travel or even a new home, then the chances are some additional savings will be needed. A LISA can play a valuable role in retirement planning, complementing existing pension provision and providing additional flexibility later in life. Contributions to a LISA can continue until age 50, and savings can be withdrawn for retirement tax-free from age 60. Funds may be taken in their entirety or as a second drawdown after an earlier withdrawal for a first home.
WHAT’S CHANGING, AND WHAT ISN’T? With so many benefits on offer, we might not be surprised to learn that the government is considering whether the Lifetime ISA should be changed or replaced.
likely. However, as of April 2026, the LISA remains available to new applicants, the 25 per cent government bonus is still in place, and there is no confirmed deadline to close the current scheme. What’s more, HMRC has confirmed that
anyone who opens a LISA under today’s rules will keep those benefits for the lifetime of their account. That includes being able to continue to contribute, the 25 per cent bonus and use of the savings either towards a first home or for retirement from age 60. In its current form, the LISA really is a
fantastic product, and something that I wish had been available when I could have used it (although my son will be getting one as soon as he turns 18!). While its future may evolve, the Lifetime ISA is, for now, a very compelling way to save. For those eligible, there is a clear incentive to act while current rules remain. With eligibility limited to those under 40 and potential changes being considered, opening a Lifetime ISA sooner means securing today’s benefits and starting to build that tax-free bonus straight away.
Contact us on 01689 891454 or visit
www.policefriendly.org.uk to find out more.
LIFETIME ISA AT A GLANCE • Open to ages 18–39 • Contributions start from £50 a month
• 25 per cent government bonus on savings (up to £1,000 per tax year)
• Can be used for a first home (up to £450,000) or for any reason in
• Withdrawals for other purposes may incur a charge
retirement (age 60) 35 | POLICE | APRIL | 2026
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