How do I set up a pension for my kids?

[coodawoodashooda]

I could only pay about a fiver a month into it but it would be a start. Can anyone tell me more about this?

Watching.

Ask for this to be moved to money matters as you will get more advice on there.

Speak to a financial advisor. It's usually free because they get commission.

Open up a sipp for child, Hargreaves and landsown have one I think the min balance is 100 to open.

Do they also have s and s iSa

What is an s and s?

Can I ask - why would you want to? Surely saving to help with house deposit is far more important than a few hundred quid that they can't access till they retire and will be worth next to nothing?

S and s = stocks and shares ISA.

S&S ISA = Stocks and Shares ISA - over the long term the benefits are usually better than a Cash ISA because you're following the stock market rather than bank interest rates, much as a workplace pension does.

You can get both types as a Junior ISA, but the child gets control of the money when they turn 18.

Op we have cash ISAs forward DC and stock and shares.

The cash ISA is for driving lessons And the other for uni/ house with small inheritance in it. The cash ISA is about 1 % interest. The stocks and shares at the moment about 20% and has hovered there for years.

I really want to also open a sipp for them.
Self invested personal pension.

I Just don't have the £100 each to hand for them at the moment.

Sipps and all these savings are a great Idea.
Vanguard's and black rock have ready made funds for this.

Life strategy fund Which invest in a little of everything, everywhere with low costs.

I would open sipps with vanguard but for some reason they don't do childrem yet.
I have a sipp with h and l.

Invested in mostly vanguard fund's.unfortalty at the moment I can't add to it.

The biggest enemy is procrastination.
Many people open up with h and l because their site is easy to use and has a good app
Then move into cheeper platform When they have a better idea what they are doing.

I think 100 is Also the minimum open for stock and share child ISA.
If you can I would get yourself a stock And shares ISA opened, and a sipp and Same for the DC
All in one go.

Any of the pension companies will let you invest on behalf of an under 16. I think our kids' pensions are with the Co-OP. SIPP is self invested personal pension. I don't think you need to pay a financial advisor at all, if you google "start pension for a child" and look for results on things like moneysaving expert.

Obviously it's a very long-term investment which the child can't touch until they are retirement age. Cash ISAs and other investments are not a bad thing at all but they will get access when they are 18 and not all kids at that age make sensible financial decisions.

No they don’t ….they can’t charge commission and haven’t been able to for the last 10 years….you will pay a fee for advice which will not be worth it in their case you will need to DIY

You don't needs fa and I'm not sure one would even talk to you with. Fiver to bung in now And then.

Why a pension and not a house deposit fund? I'd sooner be a homeowner on a smaller pension than paying rent forevermore

HL seem to have the lowest minimum lump-sum requirement for a SIPP (at least of the big players), but want a minimum of £25 per month if choosing a monthly contribution scheme. iWeb have a much higher lump-sum requirement (£1000) but have no minimum amount for a monthly contribution. (Dealing charges with iWeb are alot cheaper than HL, but I haven't compared their overall SIPP charges).

As you're investing for a child (and probably not huge amounts) imho keep it simple and just stick any contributions in either VWRL (Vanguard all-world ETF - distributing) or VWRP (same but accumulating). If you want to stick to developed world only look at VEVE (distributing) or VHVG (accumulating).

If you're interested in investing have a look at the moneyvator website - they also have a section on the different brokers.

For anyone wondering why you'd invest in a pension for a child the answer is free money! "The annual pension contribution limit for non-earners is £3,600 gross - a payment of £2,880 to which the tax man adds £720."

The only thing my financial adviser warned about was if your child may end up a high earner they may not thank you in the end if they have less pension allowance to ciphen off money to pay less tax because its already been used up saving from when they were a kid as there is a cap on how much you can have in a pension before it is taxable. Think 1mil? But I don't think that's most people so will probably start one for them at some point. At the moment focusing on my own pension

Hargreaves has a monthly minimum of £25 plus 20% top up although also considering something like LISA (if it's still around) when they turn 18

DC have a projected retirement age of 75!!

I opened a virgin child pension for my son. Started at 50 pound and increased by 10% every year. I did it because I’m an older mum and wanted my child to actually get some of my money rather than it be eaten up by care home fees or carer fees if it was in my savings. ISA’s they can access at 18.

I'm a struggling single mum. Not a chance I could save a deposit for them. I could get them started with a pension though.

I honestly wouldn't bother.

They cash everything in they can at 16, 18, 21, 25, 30 ... and there's nothing you can do to stop them.

You'd be better off using it for your own security now and going forwards, building up some savings of your own, so you can assist them as and when you feel is right. I know the tax free element sounds attractive but you get £20k tax free a year in an ISA, and you accumulate those ISAs year on year.

I've seen too many adult kids blow money the minute they go to university / leave home. It's painful. If you put it in a trust you could have the trustee(s) being pestered from pretty much the time the kids enter further education (age 16).

I would buy premium bonds for them.

You'd be better opening a stocks and shares ISA and putting a small amount in to build a house deposit.

They cash everything in they can at 16, 18, 21, 25, 30 ... and there's nothing you can do to stop them.

A pension pot cannot be accessed at present until age 55 (due to rise to 58) so is a good way to save money if you don’t want them to blow it all.

I started a S+S isa for my DD when she was born. By the time she was 18, we had enough money in it to see her through Uni without it breaking us financially. If she hadn’t gone to a Uni, we would have given it to her for a house deposit.