LISA for the Wealthy
June 13th, 2016
The new Lifetime ISA launched by George Osborne in his March 2016 Budget, and which opens to investment next April, will primarily benefit the wealthy, says the Financial Times, citing research by insurers Royal London. It points out that no typical worker in their twenties, earning £20,000 a year, will be able to save the maximum £4,000 a year into the Lisa since this would represent half their disposable income after housing costs. Instead, it reckons that the 300,000 high earners who have had pension contributions restricted under new rules will pay their children’s’ contributions to Lisas and collect over half the £170 million the Government expects to stump up in bonuses for Lisa savers.