A total of 61 per cent of those under 40 and working would consider opening a Lifetime Isa, according to research by pensions and benefits consultancy Hymans Robertson.
The Lisa is due to become available in April to allow those aged between 18 and 40 to save towards their retirement or a home with the help of a 25 per cent government bonus.
The consultancy surveyed over 1,000 people at the end of September, and of those 23 per cent plan to open a Lisa straight away.
In London, 72 per cent would open a Lisa at some point and 37 per cent straight away, which according to Hymans Robertson reflected the difficulty young people have in getting on the property ladder in the capital.
For 57 per cent of those surveyed, the main attraction of the product is the government bonus.
This was followed by the flexibility of being able to use savings towards a first home rather than having it tied up until retirement, for 36 per cent of those surveyed.
Paul Waters, partner at Hymans Robertson, said: “We need to look at the reality for young people. A 25 per cent bonus on savings towards a first home will be an irresistible and much appreciated leg up on to the property ladder for many.
"The fact that Lifetime Isas have even greater appeal among London’s young workers undoubtedly reflects the difficulties faced getting a foot on that first rung in the capital.
He said the industry needs to move away from looking at pensions and Lisa as competing products.
“Younger workers don’t see them as an ‘either/or’ decision. They see them as a product that could give a boost to their savings. But they also appreciate the boost to savings you get through employer matching contributions in workplace savings.
“We have chronic levels of under-saving in the UK. Post Brexit, the number of UK workers that won’t be able to retire with an adequate income has increased from two-thirds to three-quarters. The biggest issue we face is that as a nation is that we’re under-saved."
According to the research, of those who would consider opening a Lisa, 68 per cent would save into a Lisa alongside a pension, with 49 per cent saving more to a pension and 19 per cent more to a Lisa.
Of those who would not consider opening a Lisa, 41 per cent cited the early exit penalty as the main reason, while 34 per cent cited preferring to save through a pension to take advantage of employer contributions.
For those surveyed, savings priorities tended to be short term, with saving for a home and holidays top of their lists, whilst paying off debt and saving for every day living costs ranking higher than retirement savings.
Colin Rodger, director Glasgow and Edinburgh-based Alexander Sloan Financial Planning, said: "This shows that there is a willingness to save if the product is right and provides a solution to younger people’s concerns such as house purchase."
