Source · Select Committees · Treasury Committee
Recommendation 2
2
Acknowledged
Cash Lifetime ISAs may not achieve optimal long-term retirement outcomes compared to invested assets.
Conclusion
Some Lifetime ISA providers only offer the cash Lifetime ISA. Retirement savings held within cash Lifetime ISAs may not achieve the best outcome for a Lifetime ISA holder over the long term, compared with investing in higher risk but higher return assets such as bonds and equities. (Conclusion, Paragraph 25)
Government response summary AI-generated
The government reiterated the purpose and success of the Lifetime ISA and stated that it keeps all aspects of the policy under review and carefully considers all representations received, without committing to specific action on the performance of cash LISAs.
Government Response
The government responded to this report on 11 September 2025. No passage in that response could be matched to this conclusion. Read the response document ↗