Standard Life U-turns on Workplace Isas

Standard Life U-turns on Workplace Isas

Jamie Jenkins, head of pensions strategy at Standard Life, said he was not convinced Workplace Isas would engage or encourage people to save more alongside auto-enrolment.

The idea has been touted by Michael Johnson, research fellow at think tank the Centre for Policy Studies.

In April this year, the centre revealed a list of proposed details for the Workplace Isa, which would sit alongside the newly announced Lifetime Isa and form part of the auto-enrolment legislation.

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Four years ago, Mr Jenkins said research from the company had shown that encouraging employees to save into an Isa alongside their pensions could significantly increase their retirement income.

Now, however, he has changed his view on how this would work, stating if the argument is to have a Workplace Isa on the grounds people would save more, he is not convinced offering an alternative to auto-enrolment would achieve that goal.

He said: “Our experience is that tax wrappers generally don’t excite people at all. People might say ‘yeah Isas are great and so on’, I just don’t think a change in the product or offering an alternative under auto-enrolment is the right way forwards.”