Not so Nice LISA?
October 12th, 2016
The Lifetime LISA rules were confirmed recently, but Nationwide and Standard Life have said they will not be offering the new scheme next April, while many other institutions have yet to say whether they will or wont, says the Mail.
Meanwhile the Mail says the scheme will be a very poor substitute for pension savings. Someone putting £4,000 a year into the LISA starting age at 30 would end up with £380,000 at age 66, but in an employer pension scheme they would have £807,000. The LISA would support a lifetime income of £22,500 a year and the pension plan £31,000 a year. As the Mail puts it, your loss with the LISA is the Treasurys gain- because you secure much greater tax benefits with the pension