Under-40s picking LISA over workplace pensions

12 May 2017

The new lifetime ISA which was introduced last month is causing many under-40s to rethink their retirement saving plans.

According to research by MetLife (reported by Professional Pensions) nearly a third of under-40s will cut back on pension saving and instead put money into the Lifetime ISA (LISA).

Almost a quarter (23%) of under 40s said they would reduce the amount they were investing in their pension, while roughly one in 10 (9%) said they actually planned to leave their workplace pension scheme to concentrate on saving into their LISA.

The survey, which canvassed the views of 1,071 employed adults aged 18 and over during February 2017, also found one in five (21%) members of the same demographic admitting they had not heard of the savings product.

Separate research from MetLife, meanwhile, found more than two-thirds (69%) of advisers are concerned the launch of the LISA could deter young savers from investing in pensions - potentially resulting in a two-tier system for retirement planning.