PLSA comments on introduction of LISA

Trustees Agenda posted on 5 April, 2017

The PLSA has commented on the introduction of the Lifetime ISA (LISA) which is due to become available from tomorrow.

Nigel Peaple, Deputy Director of Defined Contribution, Lifetime Savings and Research, commented "While the LISA can be the right choice of retirement saving product for some groups in the workplace, such as the self-employed, overall we do not believe the LISA should be sued as a replacement for a workplace pension. The LISA does not provide the strong governance commonplace in a workplace pension, nor the value for money ensured by the charge cap, nor a default fund designed to meet member needs. Crucially, unlike workplace pensions, the LISA does not benefit from mandatory employer contributions. On the other hand, the LISA does look like a good financial product for first time buyers who are saving for a deposit to buy a house."