7% would opt out of workplace pension in favour of Lifetime Isa

Pension imageJust 7% of respondents would stop saving into a workplace pension upon the introduction of the Lifetime individual savings account (Lisa), according to research by Fidelity International.

Its survey of 2,000 UK adults aged between 18 and 40, also found that 37% of respondents would be interested in saving into both a workplace pension and a Lisa.

The research also found:

  • More than half (56%) of respondents would prefer to save solely into their workplace pension rather than contributing to a Lisa.
  • 20% of respondents who rent are part of a workplace pension scheme.
  • 30% of respondents who are homeowners are in a workplace pension scheme.

Richard Parkin, head of pensions at Fidelity International, said: “Suggestions that the Lisa will undermine pension savings are, we think, overdone. Encouragingly, the research shows that those who are involved in [workplace] pensions do value them and will stick with their scheme even when Lisas are launched.

“The idea that people will opt out of pensions to save for house purchase in a Lisa seem to confuse cause and effect. Those who are determined to buy their own home but can’t afford to do that and contribute to their workplace pension will surely opt out of the pension in any case, as our results show.”