AJ Bell has warned that the government will risk a backlash from younger voters if it “caves to pressure” to scrap the Lifetime ISA (LISA), a product created in 2016 to help younger people save for a first home or retirement.
Specifically, the LISA was criticised for being unpopular, too complex, while also having “perverse incentives” and not complementing traditional pensions.
Commenting, AJ Bell senior analyst Tom Selby said: “The Government will cause uproar among younger voters if it caves in to pressure to scrap the Lifetime ISA. The product has been a hit with consumers so far and it would be ludicrous to pull the rug from under people now.
“Nobody is claiming the LISA is perfect, and policymakers need to look at ways to make the transfer process easier to navigate. The 25% exit penalty also remains a bone of contention and should be reduced so as not to excessively penalise savers.
“But ditching the LISA now would make little sense and risks leaving hundreds of thousands of people who have already invested stuck in limbo.”
Latest News
-
Third of UK adults relying on inheritance to fund retirement
-
Govt has failed to act on lifetime ISA recommendations – Treasury Committee
-
‘Fear of rejection’ biggest barrier for one in three aspiring buyers
-
FCA consults on unlimited contactless card payments
-
Tavistock acquires Lifetime Financial Management
-
Consumer finance new business grows 4% in July – FLA
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.
In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.
In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.
The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories