Child's pension

[IpsyUpsyDaisyDo]

We have pretty much decided to start a pension for 3yo DD which we will pay into monthly (she already has a Junior ISA for birthday money, gifts etc.)

Both DH and I have stakeholder pensions which kind of just chug along, and I get a valuation of mine every quarter. It looks like the most recommended pension at the moment for children is HL's Junior SIPP.

My problem is lack of confidence, knowledge, experience etc. in managing a SIPP - I've never done it before, and there's the added pressure of doing it on behalf of DD! Is it easy to do? Will I have to spend a huge amount of time looking at the financial pages, and nipping off to the loos at work to move the money from A to B?!

This lack of confidence is making me want to stay within my comfort zone and just set her up with an easier stakeholder, which I may be more comfortable with, but which may not be the best thing for her money....

If you want to take less of an active role in investment choice, you can buy some sort of managed fund. HL have their own multi-manager funds which are professionally managed - you just need to choose one which has risk levels which match your preference. As you're investing for a pension though, you could consider Target Date funds. These are funds which invest in a range of other funds with the aim of being sold at a particular date. In other words, if you are likely to be retiring in 2045 you might invest in the Birthstar Target Date 2045-2050 fund (although I think this is the longest dated they do).

Thanks Hereward, more research needed on my part I think!

I'm in exactly the same position. I want to look at pensions for the DCs but know nothing about them and the level of knowledge you seem to need is very scary and off-putting (hence burying my head in the sand about my own pension!)

why not ask an IFA for help for a one off fee? Lots of them do know what they are doing.