Individual Savings Accounts: Occupational Pensions

HM Treasury written question – answered on 12th May 2016.

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Photo of Julian Knight Julian Knight Conservative, Solihull

To ask Mr Chancellor of the Exchequer, whether it is his Department's policy that employees should be offered the choice of either auto-enrolment or paying into a Lifetime ISA as a means for saving for their pension, or that employees who wish to invest in a Lifetime ISA must do so in addition to auto-enrolment.

Photo of Greg Hands Greg Hands The Chief Secretary to the Treasury

The new Lifetime ISA is an additional flexible savings product which will complement pensions to give savers greater freedom and choice to save for the long-term in a way that works for them.

With automatic enrolment already helping nine million people with their pensions, the Government remains committed to supporting people who save in different ways.

Increasing the choice of savings products available, the Lifetime ISA supports the Government’s ambition to encourage a regular savings habit amongst young people and to create a culture of long-term saving by offering the right products to suit their changing circumstances at different points in their lives.

From April 2017, people aged 18 to 40 will be able to save up to £4,000 each year into a Lifetime ISA and receive a 25% bonus from the Government. Under the new Lifetime ISA, young savers will no longer have to choose between saving for their first home purchase or for retirement.

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