Financial services group True Potential has confirmed it will launch a lifetime ISA (LISA) product before the end of 2017, though it was unable to give a concrete date for the launch as yet.
The product will initially come in the form of a stocks and shares LISA, though the group hasn't ruled out an additional cash ISA option in the future.
True Potential has now joined the likes of Hargreaves Lansdown and AJ Bell which have also confirmed they will be launching the product.
The LISA will be available to the public from next month and will allow those aged between 18 and 40 to save up to £4,000 a year towards a pension or a house tax free, with the promise of a 25% government bonus if the cash is withdrawn for retirement income or to buy a home.
A national poll of 2,000 people conducted by True Potential in October 2016 indicated there was an appetite for the LISA among consumers, the firm said.
According to the poll, almost a third (30%) of people aged between 25 and 40 would choose the LISA over a pension, while almost two-thirds (64%) would use their LISA to buy a first home.
Almost two-thirds (58%) of those polled would use their LISA for retirement savings in conjuction with a pension.
True Potential senior partner Neil Johnson (pictured) said: "ISAs are far simpler and much better understood by clients compared to pensions. Last year savers put almost £2,500 more into an ISA compared to a pension.
"Our research shows healthy consumer appetite for the Lifetime ISA already. True Potential has campaigned for many years for an enhanced ISA and we will be launching our own stocks and shares Lifetime ISA later this year."
However, the product has come under criticism from advisers, who thought the introduction of the LISA could spell the beginning of the end for pensions.
Last year even True Potential itself warned savers who opt for the LISA in exchange for traditional workplace pensions could miss out on as much as £20,000 worth of employer contributions over the lifetime of their savings pot (based on 3% employer contributions on a £26,000 salary over 32 years).
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