Page 16 - Savings Psyche
P. 16

Savings solutions                                               the house purchase for which the schemes are designed.
                                                                In that way, the LISA provides a viable, relevant choice for
With research and behavioural insights revealing so many        those who are not saving because there is no workplace
varying savings priorities according to region, age and         savings product that meets their needs. Meanwhile, for
lifestyle, the need to offer alternative workplace savings      those who want to focus their savings solely on retirement,
models beyond just a pension is clear. However, with the        traditional pension plans will remain available.
balance between flexibility and certainty being so crucial,
employers must carefully consider those alternatives.           Awareness ending paralysis

The introduction of the LISA and Corporate ISA (CISA)           Despite the benefits of the LISA to all employee groups,
as a workplace savings options to sit alongside the             awareness of how it works is relatively low; however, this
traditional pension would answer many of the questions          is not surprising as it has not formally launched. As Figure
and requirements that employees have. The LISA offers the       10 shows, just over a third of people are aware of the LISA
level of certainty that appeals to an increasingly risk-averse  and its function. However, as Figure 11 shows, the idea of
workforce, as well as providing flexibility, with employees     an alternative method of saving to the pension model holds
able to put money in as they would with a pension, then         either the same or a higher level of appeal to most people.
take it out again when they have a sufficient sum to use for

Figure 10. Level of awareness and knowledge of Lifetime ISA     Figure 11. Attractiveness of LISA compared to ‘traditional’
                                                                pension schemes

                           4%                                                14%
25%                             37%

                                                                21%               32%


I am fully aware of it and know                                 It’s far more appealing
how I could use it                                              It’s slightly more appealing
                                                                It o ers the same appeal
I had heard of it, but I’m not                                  It’s slightly less appealing
really sure how it works or                                     It’s far less appealing
what advantages it o ers                                        Don’t know enough to comment

I hadn’t heard of it before
Don’t know

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