According to research by Hymans Robertson, the majority of UK workers aged under 40 who would open a lifetime individual savings account (LISA) would save money into it alongside their pension.
The research, which questioned 1,000 employees across the country, all of whom were aged under 40, found that 68 per cent would create a LISA and use it as a moneybox to complement their pension savings. It also found that 61 per cent would open a LISA and 23 per cent plan to do so as soon as they can.
The research also found that more than half of survey respondents – 57 per cent – see the government bonus as the main appeal of the LISA, while 36 per cent see the main attraction as being the flexibility to make use of savings towards a first home.
Paul Waters, partner at Hymans Robertson, said: “We need to move away from looking at pensions and LISAs 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 [they] get through employer matching contributions in workplace savings.
“There is a growing disparity in wealth between the generations. Anything that gets younger people into the savings habit should be viewed as a positive."