How do I set up a pension for my kids?

29 replies

coodawoodashooda · 23/04/2022 09:42

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

OP posts:

SpindleInTheWind · 23/04/2022 17:38

BertiesShoes · 23/04/2022 17:31

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.

Fair enough.

I know they 'gain control' at 18. But I appreciate the correction.

SkoolShoes · 23/04/2022 17:57

SpindleInTheWind · 23/04/2022 17:05

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).

This is the point of starting the pension when they are kids - they can't cash it in.

I have used my ISA allowance for last year for some stagnating savings I had put aside for my children. I didn't want to put it in their names as they will have access at 18. In my name...I get to control when they get it.

I may think about a pension for them now too.

RomeoOscarXrayIndigoEcho · 23/04/2022 17:58

I have a stakeholder pension for both my DC with Standard life. I (we really, as joint decision with DH) save £20 pcm each. This gets topped up by £5 due to the tax benefit best way to get a bit of extra money we feel.

We deliberately started this to benefit from growth over 60plus years and because I want our DC to know we did the best we could for them at every stage of their life.

We also have savings for them to use as they wish. I hope towards a deposit on a house. Not a vast amount of savings mind you but it is what it is.

I think there may be a minimum payment into a stakeholder pension.

SpindleInTheWind · 23/04/2022 18:25

Yay, you've all proved the opposite of my point! I'm so pleased to be wrong.

OP, listen to the wise women above not me ffs.

(Premium Bonds on the other hand ... they can access them at 16, and that stung a bit.)

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