There has been much talk of the Lifetime Savings ISA (LISA) since it was announced in the Budget earlier this year.
Does it signal the end for workplace pensions? Will it impact pension savings and so on?
However, what is interesting is that it has divided the market already with some big providers like Nationwide, who do offer a Help to Buy ISA, stating they won't be building a LISA. Some other organisations such as Standard Life have asked for an extension as they don't expect to be ready to launch in April 2017. Others have debated the key risks for individuals in using the LISA given there are significant exit charges.
It's this last point that should be the biggest point of concern. The LISA is an innovative savings vehicle, but it is very specific: it is principally most suited to those saving for a FIRST home and/ or those saving for retirement who can't save into a workplace or personal pension, i.e they may be self employed, they may have already reached their annual/ lifetime limit etc.
For most other savers, it is not likely to be the most suitable saving choice.
Those who are building a LISA will be doing it for commercial purposes and inevitably will be looking to market and sell it to as many people as possible.
What's needed is some really clear guidance for all those who may be considering the LISA to ensure they understand their choices and how to assess whether it is the best home for their hard earned savings.
Nationwide will not offer the lifetime ISA next April. The building society offered the government's previous flagship saving scheme the Help to Buy ISA to its savers. However, a spokesman for Nationwide told the Times 'we do not currently plan to offer the lifetime ISA product from 2017'.He added: 'Our members have many and diverse needs and we need to be assured that such products are simple for them to use and understand.'We will always look at each new product as it arises and evolves in the interests of all our members.'Nationwide joins a growing list of providers who have concerns about launching the lifetime ISA by the government's planned launch date of April 2017. Standard Life is one of the companies to have called for a delay in the launch date.