True Potential Investments to Offer New Lifetime ISA
We’re thrilled to confirm that we will be adding a new product to our range after a 3-year campaign
April 2016: As a fast-growing investment management firm, we can proudly announce that we will be offering consumers the new Lifetime ISA (LISA) from April next year.
The enhanced ISA was unveiled by the Chancellor at the Budget in March and will include a 25% government top-up on consumer savings up to £4,000 annually. It will be available from April 2017.
Offering the LISA is a ‘natural next step’, having campaigned since 2013 for an enhanced ISA. In our ‘Simple and Effective’ paper in February, we made the case for a 25% top-up on ISA contributions and a higher annual ISA allowance. Both measures were introduced at the Budget in March.
We already provide ISAs and pensions and expect the LISA’s simplicity and incentives to be popular with our two million customers as well as savers across the UK.
The new LISA will be available to all advisers using True Potential’s systems – currently 20% of the UK market. Consumers will also be able to access the LISA on our DIY online investment site, True Potential Investor. We power 30,000 workplace pensions and are campaigning for the LISA to be integrated into the Government’s national workplace savings scheme, known as auto enrolment.
In advance of the Budget, we asked 2,000 adult savers whether they would be more likely to save into an enhanced ISA or a pension, with 60% saying they would opt for the ISA.
Managing Partner of True Potential, David Harrison, said: “The introduction of the Lifetime ISA will be a turning point in the nation’s savings, providing a viable alternative to a pension.
“As a provider of both pensions and ISAs, we know that ISAs are far simpler. They are also much more popular among consumers and having put forward proposals for this type of ISA, it’s a natural next step for us to offer it to our customers.
“The challenge for the Government now is to integrate the Lifetime ISA into workplace saving schemes, which currently only accommodate pensions. We will work closely with the Treasury to help the Lifetime ISA reach its true potential.”
True Potential has been ranked as the fastest growing financial advice and technology services company headquartered outside London in the 2014 and 2015 Deloitte Technology Fast 50.