Lifetime ISA fears 'overblown'

'Allow employers to contribute'

Hannah Godfrey
clock • 2 min read

Savers are planning to use the Lifetime ISA (LISA) to boost their savings pot, rather than as a replacement for their pension, research by True Potential has suggested.

The LISA,  which will be available to those under the age of 40 from 6 April, has faced criticism from the personal finance sector, with a number of commentators expressing concern it could have a detrimental effect on how consumers treat their pensions. Warnings have also been sounded that savers who plan to opt out of workplace pensions in favour of the LISA could lose valuable employer pension contributions. In contrast, however, True Potential said many people were planning to take a "best of both worlds" approach. Of the 2,000 18 to 40 year-olds canvassed by the group, almost hal...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IHT on pensions to cause 'operational complexity and risk' for providers

IHT on pensions to cause 'operational complexity and risk' for providers

Expected to lead to delays in payments to beneficiaries

Isabel Baxter
clock 31 January 2025 • 3 min read
DB transfer advice slows since FCA's 2020 crackdown

DB transfer advice slows since FCA's 2020 crackdown

Many firms have stopped offering DB advice, regulator finds

Isabel Baxter
clock 30 January 2025 • 2 min read
SSAS and divorce: Everything advisers need to know

SSAS and divorce: Everything advisers need to know

'It's estimated that only 4% of divorces include a pension'

Caitlin Southall
clock 30 January 2025 • 5 min read