• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Investment Conference

      This two part Investment Conference will bring you the latest updates from economists, asset managers and pension consultants. We will be taking a look at the outlook for the 2021 economy, alternatives, cashflow strategies and global equity markets to name a few, assessing how they fared through the volatility and what we can expect for the year ahead.

      • Date: 20 Jan 2021
      • Digital Conference
      event logo
      Webinar: Using passion for ESG to unleash member engagement

      This webinar will look at how pension schemes can harness their members’ interest in ESG to engage them more broadly with their pensions. In particular, it will look at exclusive research showing how members are reacting to ESG; their propensity to act versus their actual behaviour; and the expectations they have of providers in this regard.

      • Date: 26 Jan 2021
      • Webinar
      event logo
      Webinar: What to put on your GMP Equalisation project roadmap for 2021

      This webinar will bring together views from actuaries, lawyers, administrators, trustees and data experts to look at the pragmatic, collaborative solutions that are open to schemes to solve the GMP equalisation challenges in 2021. It will assess the individual challenges schemes face with equalisations and provide some practical options that are available to resolve these issues.

      • Date: 02 Feb 2021
      • Webinar
      event logo
      Webinar: Will the world return to normal in 2021?

      In this webinar, PP editor Jonathan Stapleton will be joined by BMO’s chief economist Steven Bell and director of fiduciary management, Christy Jesudasan, alongside PTL trustee director Melanie Cusack and Isio’s head of fiduciary management oversight Paula Champion to discuss the significant impact of these themes on the pensions sector.

      • Date: 04 Feb 2021
      • Webinar
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
  • Law and Regulation

Government reveals LISA details but industry may not be ready

Government reveals LISA details but industry may not be ready
  • James Phillips
  • James Phillips
  • @PPJamesPhillips
  • 07 September 2016
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Pension professionals have welcomed the government's decision to keep the lifetime ISA (LISA) simple after a bill containing details of the saving vehicle was published.

The Savings (Government Contributions) Bill, introduced in the House of Commons on 6 September, indicates the government remains committed to introducing the tax-efficient account for its planned April 2017 launch date.

However, there remain concerns some providers may not be ready in time for the launch due to a further delay in providing specific details on the policy.

Related articles

  • FCA data reveals over £20bn of DB transfers between 2018 and 2020
  • Cushon launches its first net-zero pension
  • PensionBee launches flexible offering for self-employed
  • Trustees will need to be corporate finance experts under new TPR powers

The LISA, which was announced by former chancellor George Osborne in the 2016 Budget, was originally planned to allow people under the age of 40 to save up to £4,000, then benefitting from a 25% top-up from the government.

However, the bill neglects to include some of these details. Although it refers to a maximum contribution limit, an age limit, and a government bonus, it does not provide any firm details.

It does confirm savers will only be able to withdraw from the account, without incurring penalties, in order to fund their first home, to fund retirement after age 60, or due to terminal illness or death.

There had been concerns LISA would be delayed or made more complex, but the publication of the bill has somewhat eased these worries.

Hargreaves Lansdown head of retirement policy Tom McPhail said keeping LISA simple would avoid extra costs to users.

"We are 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."

However, providers are still warning they may not be able to provide the product as early as April 2017.

Aegon pensions director Steven Cameron warned it might be challenging.

He said: "Unless the details are all clear and available, it's very difficult to confirm whether it's going to be possible to launch by next April.

"As things stand, what has been helpful is the Treasury has kept things simple. This does help avoid complicating the product design both for the manufacturer but also for the end customer.

"While the bill gives helpful clarification, final details are still awaited and we don't expect these until the committee stage, which is likely to be late October or early November. That only leaves five months to sort out all the details.

"What we will need to do is review what's feasible by next April. We can't confirm whether or not we will be able to launch in April. The sooner we get all the remaining details the better."

A Treasury spokesperson confirmed to PP there is no firm timetable for the bill yet, but further progress is unlikely to be made until early October, after the conference recess.

Lane, Clark and Peacock partner Andrew Cheseldine added: "The LISA will be a much needed addition to the savings market, although success is dependent on how many providers are available and how competitive the market will be - currently most are not expected to be ready by April 2017.

"The key details such as authorisation process and definitions of a ‘first-time residential purchase' will have a significant impact on the LISA and aren't expected for some time. For now, it's just a waiting game."

The LISA has been the subject of much criticism since its announcement, with industry figures voicing concerns it may encourage younger savers opt out of workplace pensions.

Shortly after her resignation in July, former pensions minister Baroness Ros Altmann said it was a "Trojan horse" that would "destroy pensions".

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Law and Regulation
  • Lisa
  • Lifetime ISA
  • Aegon
  • Steven Cameron
  • LCP
  • Andrew Cheseldine
  • Treasury
  • HM Treasury
  • Hargreaves Lansdown
  • Tom McPhail

More on Law and Regulation

DB transfers are on a downward trend
FCA data reveals over £20bn of DB transfers between 2018 and 2020

Some £20.1bn of defined benefit (DB) pensions were advised to transfer between 2018 and 2020, while £10.2bn were recommended not to transfer, Financial Conduct Authority (FCA) data reveals.

  • Law and Regulation
  • 18 January 2021
Amin: The new rules mean trustees will have to be corporate finance experts
Trustees will need to be corporate finance experts under new TPR powers

Pension trustees will have much more involvement in business discussions and corporates will need to think more about pensions when the watchdog’s increased powers come into force, LCP says.

  • Law and Regulation
  • 18 January 2021
Blyth: Anticipating a call for ways to draw a line under disputes
Is mediation set to become the new normal for pension disputes?

Mediation has been under-utilised historically as a means of dispute resolution in this area. Mark Blyth and Geoff Egerton think this is going to change.

  • Law and Regulation
  • 15 January 2021
Fairs: Working through the issues raised from the consultation
TPR response to funding code consultation reveals level of industry concern over twin-track regime

The Pensions Regulator (TPR) has published the interim response to its first defined benefit (DB) funding code consultation – highlighting the depth of industry concern around its proposed twin-track regime.

  • Law and Regulation
  • 14 January 2021
Opperman: No-one should find their hard-earned pension savings eaten away by charges
DWP sets de-minimis for flat-fee AE charges and launches work to standardise cost reporting

The Department for Work and Pensions (DWP) will ban the charging of flat fees on AE auto-enrolment (AE) pots below £100 and launch work on how to standardise cost and charges reporting.

  • Law and Regulation
  • 13 January 2021
blog comments powered by Disqus
Back to Top

Most read

Trustees will need to be corporate finance experts under new TPR powers
Trustees will need to be corporate finance experts under new TPR powers
LGPS to become negative cashflow 'by 2024'
LGPS to become negative cashflow 'by 2024'
Pension Schemes Bill set for final debate next week
Pension Schemes Bill set for final debate next week
Opperman: New TPR powers will not be backdated
Opperman: New TPR powers will not be backdated
Aegon commits to net-zero default funds by 2050
Aegon commits to net-zero default funds by 2050
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading