Six ways to 'correct the flaws' of the LISA

To help it achieve its potential

Hannah Godfrey
clock • 3 min read

There are a number of flaws in the way the Lifetime ISA (LISA) is currently set up, Scottish Friendly has concluded in a new report. Here the firm outlines six steps the government should take to enhance the product and help it achieve its full potential

Scottish Friendly supports the LISA but in its new report ‘The Future of the Lifetime ISA' it nevertheless identified a number of flaws in the current structure. It said employees who put money aside for their retirement through a LISA are losing out on significant sums of employer contributions and could find their eligibility for means-tested benefits reduced in ways that would not occur if they saved through a traditional pension. Additionally, Scottish Friendly warned of the risk of savers opting for more conservative investment strategies than is typically the case for an average...

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