Lady Altmann, the former pensions minister, said Lisas were “masquerading as a pension” and would confuse workers PAA new savings product for the under-40s must be accompanied by clear warnings about the risks, regulators ruled today just days after it was dubbed “a mis-selling scandal waiting to happen”. The Financial Conduct Authority said potential savers in so-called Lifetime ISAs must be warned about the dangers of abandoning conventional pension saving as well as the risk of triggering penal exit fees. Lifetime ISAs, dubbed Lisas, are due to be launched next April giving generous government perks to those taking them up. Those saving £4,000 a year in a Lisa will be given an extra £1,000 a year by the state. However, the money saved must be used either to buy a first home or only be accessed after the age of 60.

Source: The Times November 16, 2016 17:03 UTC