Emma is 28 and saving for her first home. She opens a Lifetime ISA and puts in £4,000 a year. The government adds £1,000 — a 25% bonus, just for saving. After 4 years she has £16,000 of her own money, £4,000 in bonuses, plus investment growth. She uses it to buy a flat under £450,000.
The catch: if you withdraw for any reason other than buying your first home (under £450k) or retirement (age 60+), there's a 25% penalty — which means you actually lose more than just the bonus. So only use it if you're confident about the purpose.
→ Action: Open a LISA before you turn 40. Even £1 secures the account.