PLSA Lifetime ISA Consultation Response

The Association welcomed the launch of the LISA. The Association believes that the LISA could be a valuable addition to the suite of products available to savers. As a vehicle for saving for a property purchase there are clear benefits for individuals investing in a LISA. The LISA may also benefit some self-employed people who lack the option of a workplace pension with employer contributions, as well as those individuals still accruing defined benefit scheme benefits (as an addition or alternative to additional voluntary contributions). 

The LISA, though, raises some serious challenges. These pertain both to the way it will complement workplace pensions and automatic enrolment. They also pertain to the design philosophy behind the product and the way that approach has shaped the product itself. In particular the absence of product level governance compares poorly with the standards now required in workplace pensions.