Turning a good political policy into a successful
financial product rests on getting the detail right……something there seems to
be little of for the new Lifetime ISA.
Many of the details around how the Lifetime ISA will work
are undecided yet they will launch in just 10 months.
Chancellor George Osborne has set a launch date of April
2017 and has outlined the basics. However, plenty of details are yet to be
decided that could have a significant impact on the savings and pensions
markets……and those that might actually use them (little old you and me).
The onus is on the Treasury to address these issues
quickly. April may seem a long way off, delivering on such a big project will
require much preparation.
The issue at its most basic is that the Lifetime ISA
looks, feels and smells too similar to a Pension. As Pensions Minister Ros
Altmann stated perfectly…… “ISA is not a pension and a pension is not an ISA’.
A lack of clarity creates confusion. Confusion will
simply mean that people just won’t use Lifetime ISA’s.
Is it too much to ask for some finer detail please?
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