LISA0019

Written evidence submitted by Anonymous

1. Is the Lifetime ISA fit for purpose in its current design, including as a combined product for house purchase and pension saving?

No. It needs more flexibility around age (how long you can pay into a LISA and when you can take money out), contribution amount limit (should increase at least with inflation every year).

2. How well do consumers transition between using the Lifetime ISA as a product for house purchase, to then a product for pension saving?

 N/A

3. Given its policy purposes, is the Lifetime ISA value for money for the Government?

 Well, its taxpayers’ money and with the ever increasing tax burden and lack of tangible benefits taxpayers receive, it is value for money.

4. Is the Lifetime ISA a suitable pension savings product?

 Yes

5. Should the Lifetime ISA be abolished?

 NO!

6. Should the Lifetime ISA be reformed to remove the withdrawal penalty?

 Yes.

7. Should the Lifetime ISA be restricted to those with no access to a workplace pension?

 No.

8. Should the Lifetime ISA house price cap be raised in line with inflation, or removed?

 Raised in line with inflation with an initial increase to take into account inflation since the last house price cap was introduced. Its only fair.

9. Should the annual Lifetime ISA limit be raised from £4,000?

 Yes to £10,000 and increased with inflation every year.

10. Should the Lifetime ISA be reformed in any other way?

Reduce the age you can take the money penalty free from 60 to 55 and allow consumers to pay in to 55 (or 60 if age access cap not lowered).

January 2025