LISA0092

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?

The Lifetime ISA is fit or purpose in its current design, this includes the combined product o house purchase and pension saving. Using the LISA is useful purchasing a house as a first-time buyer can use the funds including the government bonus to help them to purchase the house. The benefit of the Lifetime ISA is that that money can be kept separate from other savings and the user will know that the money accumulated into the Lifetime ISA is solely for the use of purchasing a property. This prevent the user withdrawing the money to use it for other purposes because they will face being penalised.

After the user has purchased the property, they can use the Lifetime ISA to save towards retirement which is a very good way to focus on retirement savings. Buy saving in the Lifetime ISA, this will help build up retirement savings and thus becoming less reliant on the state This is the goal for people to have enough in their retirement savings to prevent them having to rely on the state to fund their retirement.

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

Consumers transition well between use the Lifetime ISA as a product from house purchases, because once the house purchase is completed, they can then use the ISA to build up retirement savings

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

The Lifetime ISA is value for money because it helps people to save for retirement. The more people that use the LISA to save for retirement, the government wins because there will e less people reliant on the state and this is positive for the Treasury.

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

The Lifetime ISA is a suitable pension savings product because it helps people to build up retirement savings. It is good for people who are self-employed and people can save into LISA’s alongside their workplace pension.

5. Should the Lifetime ISA be abolished?

The Lifetime ISA should not be abolished, it is fit for purpose and suitable for future generations to come.

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

The Lifetime ISA should no remove the withdrawal penalty, because if it is withdrawn then people will start tapping into their retirement savings or house deposit.

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

No it should not be restricted to those with no access to a workplace pension and should be available to people who want to use it

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

It should be raised in line with inflation

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

Yes, the Lifetime ISA limit should be raised from £4000

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

It could be reformed by raising the age from 49 to 59 as this give people a longer time save for their retirement and build a bigger pension pot.

January 2025