Lifetime ISAs could transform workplace savings

A survey has found that 70% of large employers are looking at offering staff a Lifetime ISA (LISA) or Workplace ISA (WISA) within the next five years.

In addition, 50% of employers surveyed expect that they will let employees exchange part of employer pension contributions for cash which employees can save in a different savings vehicle, or use for other benefits. But only 11% said that the employer pension contribution would be fully exchangeable, with the rest saying that they would return a pension-or-nothing element to the reward package.

The research was carried out at 130 employers by consultancy Willis Towers Watson, and senior consultant, Minh Tran, commented: “Despite a slow start on the provider side, our research suggests the LISA and WISA are set to become an integral part of workplace savings in the very near future and that a clear trend of early adopters has started to emerge. Employers tell us that a key driver for wanting to offer a LISA or WISA is to provide a competitive reward package to attract and retain the right employees. They are embracing the evidence that a diverse workforce has a wide range of financial needs and, therefore, the LISA and WISA in conjunction with existing pension plans can help to address employees’ short, medium and long-term saving needs.”