Pensions - Articles - The launch of the first cash-only LISA

 “Generally, stocks and shares are considered more suitable if saving long term for retirement, but can be volatile short term. Cash-based investments remove the risk of falls in value and are more likely to appeal to those saving for a house deposit.

 “We believe the LISA will appeal primarily to those saving for their first home as employees will almost always be better saving for retirement through a workplace pension with an employer contribution. But until now, the only option has been a stocks and shares LISA.

 “The introduction of the first cash-only Lifetime ISA will come as a relief to those planning to use the LISA to save for a first house deposit. It’s the first cash-based product with the 25% Government bonus which offers a like-for-like replacement for the Help to Buy ISA which the Government is phasing out. It may also appeal to wealthier parents who are trying to help their children get on the housing ladder or able to pass on wealth. Even modest payments from their 18th birthday will go a long way due to the government bonus.”