As this article shows, there is always more than one perspective.
Up to now, those in the pensions industry have heralded the coming of the LISA as the harbinger of doom for pensions, believing that especially for younger savers, pension contributions will be forgone in favour of LISA savings.
Fidelity's head of Pensions claims the opposite and he may have a point.
Consider the financial circumstances of a young person saving for a deposit on a house today versus next April. Come next April, when the LISA is available, there will be an additional 25% savings in that person's LISA; extra money almost magically appearing that is not available today.
Now the bigger question is what will that extra 25% enable that saver to do? The most obvious answer of course is will enable them to save quicker for their house purchase, but there is another option worth thinking about.
They could reduce their savings into LISA to account for the government bonus, so their overall total savings remains the same. This would then give them more cash in hand which they could use to save into a pension.
Overall, they are saving the same amount but across both savings vehicles: one for the short term for a house deposit; and the other to build up long term savings for their retirement.
In most circumstances it should be possible to look at savings for the short, medium and long term. The LISA, via that government bonus, will give people that bit more room to look to save for their future as well as for now.
Lifetime Isa ‘fantastic’ for auto-enrolment: Fidelity The Lifetime Isa will be good for auto-enrolment because it will make saving for a first home more affordable, thereby leaving the under-40s freer to save for a retirement as well, Fidelity’s head of pensions has claimed.