LISAs and WISAs set to become central to UK workplace saving schemes

The majority of employers are evaluating whether to introduce such savings vehicles over the next five years.

Although it may have taken a while for lifetime (LISAs) and workplace ISAs (WISAs) to take off, they now look likely to become an integral part of the UK’s workplace savings landscape, research has found.

The study by Willis Towers Watson, a risk management, insurance brokerage and advisory firm, revealed that seven out of 10 large employers said they may introduce the savings vehicles within the next five years. Some 13% said they were either ‘very’ or ‘extremely likely’ to do so.

Minh Tran, the company’s senior consultant on direct contribution, wealth and workplace savings, said: “Employers tell us that a key driver for wanting to offer a LISA or WISA is to provide a competitive reward package to attract and retain the right employees. They are embracing the evidence that a diverse workforce has a wide range of financial needs and, therefore, the LISA and WISA in conjunction with existing pension plans can help to address employees’ short-, medium- and long-term saving needs.”

A further 50% of the organisations questioned also expected to allow staff to exchange their employer pension contributions for cash, which they could either invest elsewhere or exchange for other benefits. But only 11% intended to permit this for the full pension entitlement, with the rest planning to retain a ‘pension or nothing’ element to their reward package.