Reacting to the Treasury Select Committee’s report on Lifetime ISAs, Carol Knight, CEO of The Saving and Investing Alliance, said:
“Reform of Lifetime ISAs is what’s needed here — not abandonment. The Lifetime ISA provides clear benefits for savers, whether they’re saving to buy their first home or building a retirement fund.
Concerns around its suitability for retirement saving, particularly if consumers are using cash LISAs, withdrawal fees and the house price cap highlight the need for reform. Dismantling this product entirely would be a short-sighted mistake as they have helped young people develop long-term saving habits, and supported many to take their first step onto the property ladder. It is also a good alternative retirement product, especially for the self-employed.
We encourage policymakers to fix its flaws, not scrap it entirely, and foster financial confidence which allows people to feel able to navigate alternative products which are best suited to their situation.”