Pension v Lifetime ISA: What’s the best way to save for your retirement?

When you start searching for the best ways to build a retirement fund, private pensions might be the first option that comes to mind.

However, they’re not the only way you can prepare for your life after work. An alternative is the Lifetime ISA (LISA) – a government-backed savings account.

While you might assume you can only use a LISA to purchase your first home, this isn’t its only purpose.

In fact, according to Financial Planning Today in September 2025, 45% of LISA savers opened their accounts specifically to save for retirement, compared to 46% who opened theirs to purchase a first home.