The negativity surrounding the launch of Lisas (Concerns as Lisa savers ditch pensions, FA 25 May) has been somewhat overplayed. Suggesting that the product is too complex to be sold without advice is nonsense.
I have pointed out this product to my two eldest daughters (aged 22 and 18) and they are perfectly able to get their heads around these key points:
* Available if under 40.
* Pay up to £4,000 a year plus 25 per cent government bonus.
* Choice of cash and/or stocks and shares.
* Tax free payout at age 60, or earlier for certain types of FTBs.
* Penalties imposed if taken before then.
Yes, there are number of inherent decisions to be made when purchasing, and other knock-on considerations to take into account, but that is the same if you wanted to start, say, a cheque account as an 18 year old.
Let’s not overly frighten or confuse people, nor discourage them from saving early for a house or pension.
Anything that helps people take early financial responsibility for their future is good in my books.
Michael Lindsey
Freelance consultant
Leighton Buzzard
Bedfordshire
