I should preface that I am a self employed sole trader in my early twenties, and a basic rate taxpayer averaging somewhere between £28-32,000 per annum. The variation not only arises due to the nature of my consultancy work, but also because I actually serve as an independent contractor for a US company, so am paid in a dollar wage converted.
I am trying to evaluate which is more advantageous given my situation for saving into a pension - a Lifetime ISA, or a SIPP? I already have a Help To Buy ISA too, so I believe I would have to potentially transfer this and make use of the transfer window this tax year.
I read the following link: MSE - Lifetime ISAs when I noticed the following line:
WARNING! Unless you're a self-employed basic-rate taxpayer, using a pension to save for retirement is likely to be far better than a LISA
I am self-employed, and I am basic-rate... although these circumstances may change and (hopefully) I would see an income raise that may put me in a higher tax bracket. My father (employed, higher earnings) recommended a HL Vantage SIPP saying that the returns in later years skyrocket as interest compounds, even though it may seem insignificant currently.
That said, I feel this may not be making best use of my funds right now, especially given that I will probably still end up wanting to purchase a house at some point (another potential advantage of LISA) and also any other general attractions that I may wish to experience while being young enough to do so.
So - should I go for a LISA, or a SIPP - or even a stocks and shares ISA (I understand there's risk to capital involved)? Potentially a combination of the aforementioned?