Lifetime ISA an 'attack on pensions', AMPS warns

Ready, aim, fire

clock • 2 min read

The government's new Lifetime ISA (LISA) is a direct attack on the UK pensions industry, according to members of the Association of Member-Directed Pension Schemes (AMPS).

LISA, announced in Chancellor George Osborne's Budget in March, will allow 18 to 40-year-olds save up to £4,000 a year tax-free from next April. They can then benefit from a 25% top-up by the government if the money is used to buy a home or for retirement. However, 87% of AMPS members agreed with industry concerns that employees will opt out of contributing to pension pots in favour of LISA, and that this is a "back door" change to the UK pensions taxation system.Chairman Neil MacGillivray said the industry is concerned that lower-income earners will be less likely to save through a pens...

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