Lifetime ISA: Policy update
The government has introduced the Savings (Government Contributions) Bill to the House of Commons today. This will legislate for the Lifetime ISA, as well as Help to Save.
Hargreaves Lansdown’s Lifetime ISA product development is well on track and we expect to be ready to launch our Lifetime ISA for investors in April 2017.
Tom McPhail, Head of retirement policy “The Lifetime ISA presents an opportunity for investors to both save for their first home and for their retirement within one product. It is good news for investors that the government has chosen not to delay the launch of the Lifetime ISA, as we know investors are keen to take advantage of it.”
“We are also pleased that the government has chosen to keep the product as simple as possible, with penalty free withdrawals limited to first house purchase, withdrawals after age 60 and terminal illness. More complexity would only have added to the costs paid by investors.”
“Looking further ahead, there are opportunities for the government to further simplify the savings landscape, by consolidating down the range of different ISAs available to investors. This will simplify savings decisions and so should lead to higher savings rates, as well as saving money for the government, for the industry and reducing costs for investors. This is something we look forward to discussing with ministers in due course.”
If you want any additional information about the LISA, do not hesitate to get in touch.
NOTES TO EDITORS
Globelynx and ISDN ready
Hargreaves Lansdown is equipped with a live in-house broadcast camera via the Globelynx network and has an ISDN line available for radio interviews - 0117 934 9006. To arrange an interview with a Hargreaves Lansdown spokesperson please contact the person you wish to speak to directly using the contact details above, or call Globelynx on 0207 963 7060 or email email@example.com.