With the budget fast approaching, mutual provider Foresters Friendly Society has highlighted the importance of the Lifetime ISA (LISA) in supporting home ownership and retirement ambitions of younger savers.

The mutual provider has drawn attention to the fact that 53 per cent of 18-25 year olds with LISAs are paying into the account in order to purchase their first home, while 47 per cent of them using the LISA to save towards their retirement.

Foresters Friendly Society chief executive Paul Osborn commented: “It is imperative that safeguards are in place to support and encourage the saving habits of young people. More work must be done by both the government and industry to better communicate the benefits of LISAs, scrapping them without a better solution would severely hamper the efforts of first time buyers trying to get a foot on the property ladder.

“With wages at a historic low and living costs continue to soar, fast tracking the replacement of the Help to Buy ISA with the ISA would give a much-needed boost to people’s savings outlook.”

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