True Potential Investments will provide the new savings vehicle from April next year, when it comes into effect.
The Lifetime ISA was unveiled by the Chancellor at the Budget in March and will include a 25% government top-up on consumer savings up to £4,000 annually.
True Potential said offering the LISA was a “natural next step”, having campaigned since 2013 for an enhanced ISA. In its ‘Simple and Effective’ paper in February, True Potential made the case for a 25% top-up on ISA contributions and a higher annual ISA allowance. Both measures were introduced at the Budget.
The firm already provides ISAs and pensions and said it expects the LISA’s simplicity and incentives to be popular with its two million customers as well as savers across the UK.
The new LISA will be available to all advisers using True Potential’s systems – and consumers will also be able to access the LISA on DIY online investment site, True Potential Investor. The firm powers 30,000 workplace pensions and is campaigning for the LISA to be integrated into the Government’s national workplace savings scheme, known as auto enrolment.
In advance of the Budget, True Potential asked 2,000 adult savers whether they would be more likely to save into an enhanced ISA or a pension, with 60% saying they would opt for the ISA.
David Harrison, managing partner of True Potential, said: “The introduction of the Lifetime ISA will be a turning point in the nation’s savings, providing a viable alternative to a pension.
“As a provider of both pensions and ISAs, we know that ISAs are far simpler. They are also much more popular among consumers and having put forward proposals for this type of ISA, it’s a natural next step for us to offer it to our customers.
“The challenge for the Government now is to integrate the Lifetime ISA into workplace saving schemes, which currently only accommodate pensions. We will work closely with the Treasury to help the Lifetime ISA reach its true potential.”