Royal London sceptical about Lifetime ISA proposals

Insurer Royal London has poured cold water on a new government-backed savings product, the Lifetime ISA, known as a Lisa.

Chief executive Phil Loney said it was a “confusing product” and a “real threat” to traditional workplace pensions.

Lisas, which are due to launch in April, are pitched at under-40s saving for a house and retirement.

However, fears are growing that workers will shun lucrative workplace pensions in favour of the scheme. “We can’t see it adds much value to what’s already there,” Loney said.

“It’s a real strange beast. We’ll all offer it but it will be messy and hard to predict how it will get used,” he added.

Saving short term for a home and long term for retirement work in different ways, Loney added, confusing the Lisa.

Royal London’s sales surged again over the summer, with assets passing £100 billion and new life and pension business leaping by 47% for the three months ending September.