The Pensions and Lifetime Savings Association (PLSA) approaches Lifetime Savings from the perspective of its core mission: ‘to help everyone to achieve an adequate income in retirement’. We consider lifetime savings to be any form of cash, assets and/or investments that are used or could be used in order to support individuals in their retirement.
Data from the Wealth and Assets Survey show that people hold wealth in multiple forms, from pensions to property and ISAs to bank accounts. The Wealth and Assets Survey also demonstrates that the most common form in which individual wealth is held are in pension and property assets. The 2016 Budget placed the spotlight firmly on lifetime savings products. The advent of the Lifetime ISA (LISA) in particular illustrates that alternative retirement investment products form a key component of the present Government’s personal savings agenda.
As individuals start to save into such products, it is crucial that they benefit from the sort of best practice that has developed within the pension industry. Products need to be well-governed and deliver value for money to savers. Proper transparency will also help people to make considered decisions about their retirement savings. It is vital that savers are made fully aware of the potential benefits and drawbacks of investing in these products over the long-term.
The PLSA is working hard to promote a regulatory framework for lifetime savings that creates appropriate incentives to save, protects product providers from unnecessary costs and ensures good retirement outcomes for all savers.