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Lifetime ISA impact must be monitored

Commenting on the introduction of the Lifetime ISA Yvonne Braun, Director of Long-term Savings and Protection Policy at the Association of British Insurers (ABI), said:

"The Lifetime ISA will be a very useful savings mechanism for some people but savers should only invest in a LISA if they fully understand how they work. In particular, people should not forego their workplace pension to save for retirement in a LISA as most people will be better off saving into a workplace pension because of the employer contribution.

"It is key that the LISA does not undermine the success of auto-enrolment in workplace pensions and the ABI urges Government to monitor whether the LISA is having an impact on the auto-enrolment programme".

Last updated 06/04/2017