Foresters Friendly Society are delighted to announce our Lifetime ISA is now available

Thursday, June 08, 2017

  • Foresters Friendly Society are delighted to announce our Lifetime ISA is now available
  • Applications can be made at www.forestersfriendlysociety.co.uk/LISA
  • With Profits Stocks & Shares, fully managed fund with transparent charges
  • 1.25% Annual Management Charge
  • Life insurance cover
  • Contribute from £50 regular premium/£500 lump sum
  • 1.75% Interim annual bonus rate
  • Potential for additional final investment related bonus when you buy a home or take funds after 60.

The Lifetime ISA (LISA) is designed to help those aged 18-39, saving for their own home or planning ahead for later life and retirement.  With ever-increasing house prices and the need to start saving early to be comfortable in later life, it’s more important than ever to start saving as soon as possible.

Foresters Friendly Society provide financial products that are simple, flexible and affordable enabling individuals and their families to plan their finances and save for the future, so it’s a natural choice for the Society to launch a Lifetime ISA. 

Myles Edwards, Membership Director says “We are delighted to be launching our With Profits Lifetime ISA.  As a mutual society we don’t have shareholders so our profits are distributed to policyholders. With the low interest rates on cash-based saving products set to continue, the challenge for young savers with ambitions to own their own home or build a retirement income has never been greater. Foresters Lifetime ISA provides savers with transparent charges at 1.25%, a strong historical investment return (in the fund LISA contributions will invest in), life insurance cover, and the opportunity to boost savings with a £1,000 a year bonus from the government.”

Foresters Friendly Society offer fantastic service (97% overall member satisfaction rating in our 2016 survey), and taking out a LISA automatically makes any new policyholder a Foresters member.  As a member first organisation, Foresters Lifetime ISA includes a full package of membership benefits including Foresters healthcare grants and access to Educational and Support awards fund. 

In 2016 our members received nearly £1m in discretionary financial grants.

Foresters With Profits Lifetime ISA offers a smoothed managed investment solution to young savers seeking potentially higher investment returns than cash but unsure about taking the full risk of a unit-linked stocks and shares LISA. Our ISAs invest in our with profits fund, meaning funds have the potential for greater growth than a bank or building society cash-based ISA, but have some protection from the ups and downs of the stock market.  We aim to pay an annual bonus, and a terminal bonus when funds are withdrawn, on top of the 25% bonus from government, helping your funds grow faster. 

Performance on our existing New ISA product over the past 10 years shows strong results with excellent returns for our members.*  Barnett Waddingham  independently rated Foresters Friendly Society top for average investment return for the three year period 2013-15**.  Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

Myles Edwards, Membership Director says ‘Throughout the design and launch process our principles have been to ensure young savers are provided with a transparent, flexible saving product that can be easily compared against other Lifetime ISAs in the market to make an informed choice’. Savers wishing to take advantage of the government bonus of up to £1,000 per year can start saving from as little as £50 per month (for existing Foresters members, £100 otherwise) or a lump sum of £500.

The Foresters Friendly Society LISA is now available and potential savers can find out more and apply online at www.forestersfriendlysociety.co.uk/LISA or call us on 0800 783 4162.  Investing £4,000 during the 2017/2018 tax year means savers can benefit from the full government bonus and see their funds boosted by £1,000. 

*NISA performance over period 2004-2015 is detailed on Foresters website at http://www.forestersfriendlysociety.co.uk/saving-investing/stocks-shares-nisa/product-performance/

**Barnett Waddingham With Profits Investment Performance and Strategy Report 2016.  Barnett Waddingham are the UK's largest independent provider of actuarial, administrative and consultancy services.

The Lifetime ISA is designed to be used for a first time property purchase with a value of up to £450,000, or for retirement from the age of 60.  Funds can be withdrawn for other purposes but will incur a 25% government withdrawal charge on the whole amount withdrawn.