Maike Currie, vice president of personal finance at PensionBee, said: “While the government has confirmed that annual LISA subscription limits will remain at £4,000 until 2031, the bigger picture is clear: the Lifetime ISA’s days are numbered.
“The Budget sets out plans to consult on a “new, simpler ISA product” for first-time homebuyers, which would ultimately replace the LISA entirely.
“This reinforces a clear message: pensions are essential for long-term saving.
“This change carries an important signal for millions of self-employed savers who have used the LISA as a flexible retirement vehicle: pensions remain the UK’s only durable, purpose-built long-term savings product.
“For anyone saving for retirement, pensions offer the stability, tax relief and regulatory protection that ISAs cannot match.
“With changes to the salary sacrifice regime also now firmly on the government’s medium-term horizon, it’s never been more important to set up a personal pension and take control of your retirement.”
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