The Lifetime ISA’s (LISA) dual-purpose design may be diverting people away from more suitable products and putting part of their savings at risk, according to a report by the Treasury Committee.
Published today (30 June), MPs found that the LISA's objectives to help people save for both the short and long term makes it more likely consumers will choose unsuitable investment strategies. "Cash LISAs may suit those saving for a first home but may not achieve the best outcome for those using it as a retirement savings product, as they are unable to invest in higher risk but potentially higher return products such as bonds and equities," the report stated. Current rules ‘nonsensical' In its report, the Committee described current rules which "penalise benefit claimants" as "nons...
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