UK Lifetime ISA vs Pension Calculator (which is worth more?)

Lifetime ISA or pension: which is worth more to me?

Enter what you could save, your income, your age and what you expect to pay in tax in retirement. You get what each £1 of take-home pay is worth in each, what you would have at 60, for a first home or after an early withdrawal, and the retirement tax rate or employer match where the answer flips.

Check the figures on GOV.UK. Not tax advice or a recommendation.

Take-home pay you would put in each year (£)

Your salary or taxable income (£)

Your age

Years until you need the money

Growth per year (%)

Tax rate on pension income in retirement (%)

Employer match, % of your gross pension contribution (0 if none)

Pension paid by salary sacrifice?

Fill in the figures, then click Compare them.

Result

What you would have

Strategy	At retirement, after tax	For a first home	If withdrawn early

What to do

Step	What it means

What it does, and what it leaves to you

Covers: income tax relief on pension contributions (20%, 40%, 45% and the 60% allowance taper band), optional salary sacrifice NI saving, employer match, the 25% LISA bonus up to £4,000 a year, the LISA age rules and 25% unqualified withdrawal charge, 25% tax-free pension cash, and growth.
Gives: value per £1 of take-home, three strategies side by side, the retirement tax rate and employer match at which the pension and LISA tie.
Not decided: Scottish rates, state pension, means-tested benefits, the lump sum allowance, inflation, investment fees, the £450,000 first-home price test, whether you are a first-time buyer, employer NI, and anything that changed after this was written.

Common questions

What is a Lifetime ISA?

A UK savings and investment account for people aged 18 to 39 when they open it. You can pay in up to £4,000 a year and the government adds a 25% bonus (up to £1,000 a year) until you are 50. The money can buy a first home up to £450,000, or be taken from age 60.

Is a Lifetime ISA better than a pension?

It depends on your tax rate and whether you get an employer match. Per £1 of take-home pay a LISA is worth £1.25. A pension is worth more if you get employer contributions or pay higher rate relief and expect a lower tax rate in retirement; a basic rate taxpayer with no employer match who will pay tax in retirement usually does better with a LISA.

What is the LISA withdrawal charge?

A withdrawal that is not for a first home, from age 60, or for terminal illness costs a 25% charge on the whole amount withdrawn, which means you get back less than you paid in.

Can I use a pension to buy a house?

No. Pension money is locked until the normal minimum pension age, 55 now and 57 from 6 April 2028. A LISA can be used for a first home, which is why the two are not like-for-like for younger savers.

Should I take my employer match before a LISA?

Almost always. Employer contributions are free money, and with a match even a basic rate taxpayer is usually better off in the pension for the matched portion.

Is my data uploaded anywhere?

No. Everything is calculated in your browser and nothing is sent.