I had the same thought about new entrants. No idea about the relative impacts; guess we'll find out if it is a runner...

People make use of salary sacrifice around the thresholds of £60k and £100k, to stay the right side of those cliff-edges. Limiting the ability to do so would increase the effectiveness of the thresholds (+ revenue from the cap itself), but would make it that bit more painful to trip over them.

- Looks like you have to claim it, with no default option. Will limit uptake to some extent, but means no lost account problem.
- What would the market for such products look like? Much depends on answers to the questions above.

- When can people access it, if not for a home? Speech says 'later life' vs 5 years reported in the Guardian. Both valid, but need to be clear about the policy goals.
- How about earlier access, eg for emergencies, and would there be a penalty or not? Important choices, but could add complexity.

- Looks like the Lifetime ISA, costs more but distributes benefits wider. Would it boost the LISA or kill it?
- Who's paying whom? Presumably it's zero NI, and govt pays in gradually, otherwise it becomes more complex. Could be a use case for Open Finance?

I assumed the "different categories" were English and Scottish. Thereby sidestepping the 'British not English' nonsense, but possibly also alluding to the fact that many of us have mixed heritage across England, Scotland, Wales and NI.

Where do you get the premise that boosting investment is a principal policy goal of pension tax relief? HMT/HMRC have talked about the purpose of tax relief in the past, and that wasn't it.

Fine to make this argument, but not from a false starting point.

Quite. The focus won't be just employers: scope could include saver contributions, State Pension/age, short- vs long-term saving, and consumer decision-making.

Still risks in all these! But do the analysis, assess trade-offs; if it's an external review, govt isn't bound to the recommendations.

Targeted Support consultation and consumer research: www.fca.org.uk/publications...

Wider Discussion Paper:
www.fca.org.uk/publications...

Requiring workplace pensions to be megafund-size is a redesign of the market, and introducing pensions dashboards is design of a new market. The FCA is right to address the challenges and take the opportunities to make those markets work better - and need to work with DWP/HMT to do so. (2/2)

Good illustration of network effects in action!