The UK Parliament’s Treasury Committee has initiated a call for evidence to evaluate the Lifetime Individual Savings Account (LISA) as a dual-purpose product for home purchase and retirement saving. The inquiry will examine consumer outcomes, product design, and potential reforms, including the 25% withdrawal charge, eligibility criteria, and contribution limits.
UK Parliament’s Treasury Committee has opened a call for evidence to assess whether the Lifetime Individual Savings Account (LISA) remains an appropriate product nine years after its introduction, including whether its current design works as a combined vehicle for first-home purchase and retirement saving.
The inquiry seeks views from the finance industry, consumers and experts on consumer outcomes and product design, including transitions from house purchase to pension saving, value for money for the Government, and whether the LISA should be abolished or reformed. Specific areas flagged include the 25% withdrawal charge for non-qualifying withdrawals, whether eligibility should be limited to those without access to a workplace pension, and whether to change the house price cap or raise the annual contribution limit from GBP 4,000.
Evidence can be submitted via the Treasury Committee’s website, with a deadline of Tuesday 4 February.
The UK Parliament's Treasury Select Committee report on the Lifetime ISA (LISA) highlights concerns over its dual purpose for home purchase and retirement saving, which may lead to unsuitable strategies and expose savings to avoidable risks. It criticizes the impact of LISA holdings on means-tested benefits eligibility and the 25% charge for…
The UK Parliament's Treasury Select Committee, led by Dame Meg Hillier, announced plans to replace the Lifetime ISA with a new, simpler ISA aimed at supporting first-time homebuyers. The Committee criticized the Lifetime ISA for its complexity and dual-purpose design, which may mislead savers. A consultation on the new ISA will be launched next…