LISA after 40

kuratowski

I don't think it's clear cut at all.  Presumably, if it were obviously illegal age discrimination, AJ Bell's compliance department would put an end to it, so AJ Bell must believe their policy is justifiable, at least in the absence of an ombudsman decision.

I'm a bit torn here, on the one one hand I'd like to see this challenged (e.g. by MFW2026) to give me potentially the freedom to transfer my LISA in future, in case a better value product were launched.

On the other hand, the economics for LISA providers aren't very good as they are now, if they are forced to take on more costs, then more of them might exit the market (e.g. close to new customers) and we might have even fewer choices than we do today

masonic

kuratowski said:

On the other hand, the economics for LISA providers aren't very good as they are now, if they are forced to take on more costs, then more of them might exit the market (e.g. close to new customers) and we might have even fewer choices than we do today

I don't understand how it follows that opening up transfers in from over 40s would force providers to take on more costs. If a LISA is overall a loss making product for the provider then why would they offer them, let alone allow transfers from anyone? Why wouldn't they increase charges on this type of account (for example in line with the annual fee for a SIPP)? I just don't see how it costs more to operate a LISA for a 41 year old vs a 21 year old. I would have said it is the opposite way around.

From a few previous threads discussing this, if I remember rightly the explanation provided when one or two providers were asked is that it was the way the workflows were designed (i.e. to screen out all applications by DOB) and it may not even be intentional. If the reason really is 'it's an unintended consequence of some programming', then the cost would be in refining that code.

GPK10

The Times has an online article on this issue today- unfortunately behind a paywall so I can't read it, but hopefully the coverage might help

https://www.thetimes.co.uk/article/a-midlife-crisis-isa-trap-snares-the-over-40s-wlbmst3jw

masonic

GPK10 said:

The Times has an online article on this issue today- unfortunately behind a paywall so I can't read it, but hopefully the coverage might help

https://www.thetimes.co.uk/article/a-midlife-crisis-isa-trap-snares-the-over-40s-wlbmst3jw

Agree, having it reported on is a step in the right direction, but it will probably take a bit more than that for one or more of the providers to act.

Nurse2047

Anyone know of anywhere that now accepts cash Lisa transfers of over 40? Husband stuck with his in cash. 

Alexland

MFW2026 said:

Anyone know of anywhere that now accepts cash Lisa transfers of over 40? Husband stuck with his in cash. 

If this is for retirement then cash really isn't suitable so has he considered engaging an IFA to move it to a multi asset / target date fund on Transact which dunstonh recently confirmed was possible?

Nurse2047

Thankyou Will check this out must have missed that suggestion previously 

Alexland

MFW2026 said:

Thankyou Will check this out must have missed that suggestion previously 

Here is the thread.
https://forums.moneysavingexpert.com/discussion/6311050/over-40s-being-prevented-from-transfering-lisas-to-a-new-provider/p1