Neil Lovatt, Product Director at Scottish Friendly said: “I for one am very excited about the possibilities for resetting the long-term savings and investment landscape for a new generation of savers. I just hope that the industry responds as positively and doesn’t fall back on its usual conservative response led by systems limitations rather than imagining the possibilities ahead.”

Scottish Friendly calls on the Government to allow employers to contribute to the Lifetime ISA so that if young people do take the plan out as a means of saving for their retirement, they will not be disadvantaged or forced to go along the pensions route of saving.

Some commentators have bemoaned what they say are onerous conditions attached to the Lifetime ISA, including the tracking of different investment pots if any are cashed in. Scottish Friendly says that dealing with small pots is not difficult and that the conditions of the Lifetime ISA are not especially challenging.

Lovatt also remarked: “With a clever bit of product engineering, providers should be able to offer clients both accounts. Indeed, by linking accounts this will allow clients to feed from their standard ISA to their lifetime ISA.”