The Lifetime ISA (LISA) was announced back in March 2016 by then Chancellor George Osborne. It launches on 6th April 2017, and Foresters Friendly Society are pleased to announce we will be offering a LISA, as they’re known, investing in our with profits fund.
The product is designed to help those aged 18-39, saving for their own home or planning ahead for retirement. With ever-increasing house prices and the need to start saving young for a comfortable retirement, it’s more important than ever to start saving at an early age, for either purpose.
Foresters Friendly Society are all about helping our members and their families to plan their finances and save for the future, so it’s a natural choice for us to offer our members a LISA.
Our ISAs invest in our with profits fund, meaning your funds have the potential for greater growth than a bank or building society deposit 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 We aim to pay an annual bonus, and a terminal bonus when funds are withdrawn, on top of the 25% bonus from government, helping your funds grow faster.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.* And Barnett Waddingham have independently rated us 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 ‘With the low interest rate environment forecast to continue, the challenge for young savers with ambitions to own their own home for the first time or build a retirement income has never been greater. As a member first organisation with around 70,000 members, we are developing a Lifetime ISA proposition that includes a full package of membership benefits, with the additional benefits a with profits product provides. Savers considering a Lifetime ISA seeking potentially higher investment returns than those offered by cash products but unsure about taking the full risk of a stocks and shares LISA, could compare them against the Foresters with profits product, and wait before making a decision.’
Not only do Foresters Friendly Society offer fantastic service (97% overall member satisfaction rating in our 2016 survey), taking out a LISA automatically makes any new policyholder a Foresters member. Membership provides access to a range of benefits, including healthcare and educational grants. In 2016 our members received nearly £1m in discretionary financial grants.
Myles Edwards, Membership Director says ‘The Society commenced the Lifetime ISA product development process in 2016 and has been fully engaged in the consultation process initially with the Treasury and more recently the regulator. With the final regulatory guidelines being released by the Financial Conduct Authority earlier this month, we are finalising the development of the product and plan to launch early in the new financial year.’
The Foresters Friendly Society LISA will be available soon after the new tax year begins, and potential savers can register their interest on our website now to receive full product details. Investing £4,000 at any point up to 5th April 2018 means savers can benefit from the full government bonus (payable early in the 2018/19 tax year) and see their funds boosted by £1,000.
**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.