"The flaw in the Lifetime ISA is that employers are not able to contribute. That would give savers a much better choice but the LISA will still be popular."
Despite warnings that savers will opt out of workplace pensions in favour of the Lifetime ISA and lose valuable employers’ pension contributions, many savers plan to take a ‘best of both’ approach with two thirds planning to maintain pension contributions.
True Potential's poll shows that the majority of savers plan to use the Lifetime ISA to boost their saving pot, not as a replacement for their pension.
However 36% plan to save into a LISA instead of a pension. 46% of savers plan to save in both products, while 18% are more likely to use a pension instead of a Lisa for retirement savings.
True Potential Managing Partner, David Harrison, said: “Talk of a surge in workplace pension opt outs after the Lifetime ISA’s introduction appear to be overblown. Two thirds of people in our poll plan to carry on paying into their pension and half will take advantage of both products.
“The UK has a burgeoning savings gap that pensions have failed to address, so it is right that we look for new ways to save.
“The flaw in the Lifetime ISA is that employers are not able to contribute. That would give savers a much better choice but the LISA will still be popular. At long last we have a savings product that has already succeeded in engaging savers, despite the smear campaign led by the pensions industry and those with vested interests.”
True Potential has confirmed it will be offering the Lifetime ISA.
