Children's pension?

[Allgunsblazing]

I'm not going to win the mum of the year prize with this one, DD wants to raid the smiggle shop for her birthday.
But I just thought: why not start a pension for her? It's a significant birthday, albeit a litlle one.
Has anybody got any experience of this? I am thinking £25-30 a month.
Any recommendations? Experiences?

[gamerchick]

I don't even know they existed.

But pension as a pressie? That is not going to earn you any mammy points

[gamerchick]

What about isas? I've hear they're pretty decent. Keep meaning to look into it myself.

[Allgunsblazing]

gamerchick, I did go to the said smiggle shop and came out £57 lighter but with LOADS of plastic tat, she'll be very happy with her smoothie pencil case and assorted 'stuff'. 'Cuuuuute' erasers anyone?
But I sort of resented the amount and made me think I should have invested at least part of this money for her.
ISAs are good, she's got one, hoping she'll have a bit towards car/lessons/uni etc. basically, at 18 they gain access to the money. Which is fair enough.
I was thinking more of the long term, at 18/21/2whatever I didn't exactly prioritise my pension contribution. If I get a pot going for her, she might feel more inclined to top up, since it's there?

[specialsubject]

if it is a cash ISA you are currently wasting your time, rates are below real inflation. The only benefit is giving her an ISA foothold. If it is stocks and shares, makes more sense.

pension - you can contribute up to £2880 a year for a non-earner and the government will make it up to £3600. Show me where else you can make money grow like that!

she won't be able to access it until she is 55 unless the rules change again.

[Allgunsblazing]

specialsubject, thank you. Yes, that's what I had in mind, something to start her pension, doesn't matter she can't access it till much later on. Maybe it'll be that little bit that will help her clear the mortgage the week before she retires, even if she doesn't continue to top up significantly :)
I looked at Hargreaves Lonsdown, I'll probably be able to put £25 a month and not miss it at this point. Anything I need to know/look out for in your experience?

[Allgunsblazing]

Sorry, yes, it's a stick and shares IsA we've got for her.

[Allgunsblazing]

Stick?! Sorry. Stocks!

[specialsubject]

can't obviously recommend any particular supplier, but the MOST IMPORTANT thing is to find out the charges. Even 1% can rack up over a long time. My pension is currently charged at 0.11% - it is a closed scheme so a particularly good deal, but there will be others out there.

good one on the ISA.

[ExitPursuedByABear]

We started one for DD a few years ago. We stopped paying into it when our business was not doing as well during the recession, but it is always there for her as a starting point for a pension pot.

[AnneElliott]

We've got a pension for DS, mainly for the tax relief. We pay in £30 per month and as soon a he starts earning, we'll encourage him to pay in as well.

DS is 9 and we took it out when he was 5. You need to look for low charges and one that accepts small monthly payments. We got advice from our IFA as head setting up my pension at the same time.