What is a Lifetime ISA available to?

The Lifetime ISA is a savings account designed to encourage individuals to save for their first home or for retirement, with various government incentives. Individuals can open a Lifetime ISA if they are aged between 18 and 39. This account allows for contributions of up to £4,000 each tax year, with the government providing a 25% bonus on the amount saved, which can significantly enhance the savings potential.

Since the correct answer is that it is available to adults under 40, this aligns perfectly with the age eligibility for opening such an account. The reasoning holds that individuals must be at least 18 to begin saving, yet they cannot be older than 39 at the time they open the account, allowing them to benefit from the account until they reach 50.

The other options fall outside of this age range; therefore, they do not accurately reflect the eligibility criteria for a Lifetime ISA. This understanding of the specific age limits is crucial for effectively utilizing this savings option.