If you're looking to buy your first home in the next few years, or simply want an additional way to save for retirement, and don't mind locking away up to £4,000 per year for your future, then a Lifetime ISA might just be for you. While pensions are still the best way to save for later life, an extra £1,000 a year is certainly nothing to be sneezed at.
Additionally, you won't have to pay any tax on the money that is in an ISA, and you'd earn interest or make potential investment gains on the bonus as well as your own savings over the years, which could all add up. Of course, once you reach 60 and take money out of the ISA, you will become liable for taxation depending on what you do with the money.
One potential negative when it comes to Lifetime ISAs is that most providers currently only offer a stocks and shares LISA, with only a few cash Lifetime ISAs currently available. This means that many savers would have to invest your annual £4,000 in the stock market and risk the possibility of negative returns, albeit for the potential of much higher gains.
The good thing about the LISA's access restrictions, in combination with the stock market, is that investments tend to do best over the long term. This means that, unless you are planning to take the money out of the Lifetime ISA in a year's time, the long-term benefits could outweigh the risks. This is down to personal preference, however, and your attitude towards risk.