Pensions - Articles - Delay in finalising LISA details may be result of Brexit

 • Treasury delay in finalising LISA may be a taste of things to come as Government focusses on successful Brexit

 Steven Cameron, Pensions Director at Aegon says: “The Treasury confirmation that final LISA details will not be available until the Autumn is an early example of how Brexit preparations will inevitably create resourcing pressures across Government. The delay casts real doubt over the chances of a vibrant LISA market from next April. Only once the final details are known can the FCA begin consulting on its regulatory requirements which are now very unlikely before the year end. This leaves far too little time for providers to research, design and develop what is a radically different product.

 “We support the aims of the LISA – helping young savers to save for a first home and offering an alternative retirement savings vehicle which might encourage some to start saving sooner. We believe these aims could be met more quickly without launching a brand new product. Those saving for a first house deposit can already use the Help to Buy ISA and the Government could choose to make this more attractive by increasing the maximum contributions eligible for a Government top-up. And almost all employees will generally be better off saving for retirement through a workplace pension with associated valuable employer contributions, rather than LISA.

 ”If the Government continues to want to offer a means of saving for either a first house deposit or for retirement, they could incentivise individuals with any help to buy ISA funds not needed for house purchase to transfer these into a pension with full tax relief.”