It might feel early to think about your future – but starting now, even in small ways, can make a big difference later. Whether it’s buying your first home, saving for retirement, or protecting the people you love, getting ahead financially gives you more freedom and peace of mind.
Lifetime ISA (LISA)
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What is it? A savings or investment account for people aged 18–39 that helps you save for your first home (via mortgage and under a £450,000 home price) or retirement.Government bonus: You get a 25% bonus on everything you save—up to £1,000 per year. So, you can contribute up to £4,000 per year.Good for: First-time buyers or long-term retirement savers.Watch out: Withdrawing for anything else before age 60 comes with a 25% penalty, so it’s not an everyday savings account.Student tip: Anyone who hasn’t already bought their first home should open a LISA now (just £1) to get the clock ticking, as it must be open for a year before use.
Pensions
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What is a pension? A long-term savings plan for retirement years.
Main types (UK): State pension: You get this (at age 66-68 depending on when you were born) if you’ve paid enough National Insurance over time, through working and therefore paying tax.Workplace pension: Once you’re 22 or over and earning over £10,000 per year, your employer auto-enrols you, and must contribute a minimum of 3% of your annual salary (most employers contribute more).Personal pension (or SIPP): Optional, like a savings account which can only be used during retirement. You contribute to this yourself.Why it matters now The earlier you start, the more time your money has to grow – thanks to compound interest.
Student tip: An employer contribution is effectively a pay rise, some employers will contribute more than the default percentage if you increase your own contributions to your pension – effectively increasing your pay rise.
Life insurance
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What is it?
A policy that pays out money to your loved ones if you pass away.
Do students need it?
Not usually, but it’s important to understand for the future, especially if you:
Have a partner/any children that depend on you financially Plan to get/have a mortgage Types:
‘Term life’ (covers a set period – more common) 'Whole of life’ (covers your entire life) Why learn now?
It’s cheaper the younger and healthier you are.
Planning for the future on National Student Money
