"The implementation of the LISA has been a botched affair by the government. Even so, this is set to be the go-to investment for life’s journey in the years to come."
Neil Lovatt, Scottish Friendly’s Commercial Director, says that "awareness hasn’t been helped by the antipathy to the Lifetime ISA by the financial services industry which seems to be deliberately ignoring the introduction of this innovative new product".
Its research shows that less than one in three adults (31%) have even heard that the Lifetime ISA is being introduced in April and awareness is lowest (16%) amongst the 18-25 year old age group – a key audience for the LISA which has a maximum age limit of 40 for new applicants.
The research also highlighted the general lack of understanding of the details of the LISA. Of the 31% who have heard of the product only 15% felt they fully understand what it is, and how it works. A further 39% indicated that they broadly understand it but are not sure of the details while 12% were unclear or confused about some aspects and 3% were “totally confused”.
Neil Lovatt, Scottish Friendly’s Commercial Director said: “It’s not surprising that many people haven’t heard of a financial product that’s still to be introduced. However, awareness hasn’t been helped by the antipathy to the Lifetime ISA by the financial services industry which seems to be deliberately ignoring the introduction of this innovative new product.
“The implementation of the LISA has been a botched affair by the government. Even so, this is set to be the go-to investment for life’s journey in the years to come. We expect the Lifetime ISA to become an incentivised home for saving and investing that will eventually open up for all age groups, not just the under 40s, and one that will also be open to employer contributions.
“The Lifetime ISA has the potential to become a truly customer-friendly lifetime investment that people will understand and have faith in. The current barrier between ISAs and pensions has to disappear and the sooner the better. Rather than sulking from the side line, it’s time for others in the industry to join us and lobby for improvements as we believe the Lifetime ISA is here to stay.”
