PTL Blog

Lisa Teaser - What about value for money?

Posted by Colin Musgreaves on Mar 18, 2016, 12:42:48 PM

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Having forced my 18yr old son to invest into an ISA last year, I know how hard it is to get youngsters to save.

So I think the Chancellors news yesterday on the new LISA options is fantastic news - particularly the option for first house deposit. Maybe I can get junior to save more next year, even though his plan is to bump me into a small bungalow in 10 years time and take over the family home.

He is a basic rate tax payer and thinks pensions are for old people, so extra money into a LISA seems logical.

However, in a workplace pension he will benefit from Value for Money oversight by the providers’ IGC, who already appear to be making their mark - but under a LISA there is currently nothing proposed to protect investors from rip off charges.

Surely a logical next step, particularly if the banks enter the market next year given their history of sales issues and investor outcomes?

FCA, over to you...

 

Topics: lifetimeisa, pensionslite, isa, budget2016, savings, LISA, ukbudget2016

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