Sixty one per cent of workers under 40 would consider opening a Lifetime ISA, Hymans Robertson has found.

While over half of this age group said they would consider saving into a LISA, 23 per cent plan to do so as soon as it is launched. A further 72 per cent of Londoners among this age group said they would open a LISA and 37 per cent would do so straight away.

The high interest, especially in London reflects the struggle young people face in getting on the property ladder in the city and suggests that this is a priority for many young savers.

When asked what attracts them to the LISA, 57 per cent said that the cash bonus worth up to £1,000 a year for every £4,000 was one of its main attractions.

A further 36 per cent said that they were enticed by the flexibility of being able to use their savings for their first property, instead of having it locked until retirement.

Nonetheless, the research also noted that the LISA can be seen as a complementary product alongside a pension. Sixty eight per cent of workers said they would save into LISAs in addition to pensions, with 49 per cent saving more into a pension and 19 per cent putting more into a LISA. Only 18 per cent said that they would redirect their retirement savings into a LISA.

Furthermore, of those who wouldn’t consider opening a LISA, 41 per cent explained they wouldn’t as a result of early exit penalty fees and 34 per cent said they preferred to save through a pension to take advantage of employer contributions.

Commenting on the research Hymans Robertson partner Paul Waters said: “We need to move away from looking at pensions and Lifetime ISA as competing products. One should not be at the expense of the other. Younger workers don’t see them as an "either/or" decision.

“They see them as a product that could give a boost to their savings. But they also appreciate the boost to savings you get through employer matching contributions in workplace savings.'

“There is a growing disparity in wealth between the generations. Anything that gets younger people into the savings habit should be viewed as a positive,” Waters added.

“We have chronic levels of under-saving in the UK. Post Brexit, the number of UK workers that won’t be able to retire with an adequate income has increased from two thirds to three quarters. The biggest issue we face is that as a nation is that we’re under-saved. While they may help, they won’t solve the problem. That requires a shift to cohesive, long-term pensions policy-making – something that has been lacking for many years.”

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