PLSA responds to Treasury Select Committee's call for evidence on Lifetime ISA

Article summary

The Pensions and Lifetime Savings Association (PLSA) has responded to the Treasury Select Committee's call for evidence on the Lifetime ISA (LISA). While acknowledging the LISA's potential value for retirement savings, the PLSA emphasises that it should not be considered a substitute for workplace pensions as the LISA lacks the benefits of employer contributions, tax relief, and long-term investment returns available in occupational pensions. The PLSA expresses concern that the LISA's dual-purpose design may inadvertently prioritise housing savings over pension contributions. The PLSA proposes several reforms to the LISA, including adjustments to accessibility, contribution limits, and age restrictions. Additionally, the PLSA recommends a comprehensive review of the LISA regime to simplify and improve saver engagement. The submission also reiterates the PLSA's call for reforms to automatic enrolment, such as widening its scope and increasing the minimum contribution rate to 12%, to address inadequate retirement savings among UK savers. For groups...