And if anyone should know then it would be the Pensions Minister, Ros Altman.
Saving for what may be 30+ years in retirement is a hard enough challenge. But, as with the Lifetime ISA (LISA), you add the option of people taking money out before retirement then this makes the challenge just too difficult.
Pensions benefit from tax relief on contributions made. LISA has a similar benefit in the 25% government contribution.
Pensions have a £40,000 annual savings limit (to retain tax relief), LISA will have a £20,000 limit.
Pensions benefit from an employer contribution, which at minimum will be 2% of your annual salary and can be as high as 20% or even more! LISAs don't have this.
ISAs are not a replacement for pensions, but they should be seen and used as an additional way to build up savings tax efficiently.
A Lifetime ISA is not a pension Altmann is generally in step with the Treasury – the defined contribution overhaul launched in the 2014 Budget was “brilliant” and “a really excellent bit of policy making” – but on the question of tax relief there are suggestions she is ready to step out of line. The minister was outspoken in defence of the current system when the Treasury was set on scrapping upfront tax relief earlier this year. The Chancellor ultimately backed down on plans to replace it with a system that instead allowed retirees to access their savings tax free in old age.