Providers warn Lifetime Isa ‘direct attack’ on pensions


Pension firms overwhelmingly think the new Lifeime Isa is an attack on the industry, according to new research.

A poll of 89 members of the Association of Member-Directed Pension Schemes found 87 per cent believe the Government’s flagship product will undermine pensions.

From April 2016 people under 40 will be able to save up to £4,000 a year and benefit from a 25 per cent Government top-up. However, savers are charged 5 per cent plus the return of the Government bonus if they cash in before 60 unless it is for house purchase.

Amps members were also asked whether HMRC should reintroduce the requirement for all SSASs to have professional trustees, with 81 per cent agreeing.

In addition, 51 per cent said they would vote for the UK to remain in the EU.

Amps committee member Zachary Gallagher says: “Pensions have changed beyond recognition in the past two years, with Treasury announcements, HMRC updates and a number of outstanding issues that need to be clarified.

“But what our members need is a clear roadmap for the future and how they can best advice their clients, or produce the solutions that advisers need.”

Amps has around 200 members, including Sipp and SSAS firms, banks, investment companies and pension lawyers.