 In the 2016 Budget it was announced that a lifetime ISA would be introduced from 6 April 2017 as a more flexible way to save for both home purchase and retirement.Only those aged 18 to 40 can open an account, and at the end of the tax year (or when used for purchase) a 25% bonus on contributions of up to £4,000 a year will be paid.The £4,000 is part of the overall ISA annual allowance, not in addition to it.