Junior pension

[BreakingAndBroke]

Has anyone set up a junior pension for their child(ren)? Which company did you use?

My DC has a junior SIPP with Fidelity. No platform fees and minimum monthly investment of £25pm.

The only downside is strangely you have to submit a paper form to do the original set up and make changes in the monthly investment amount. Not a big problem for us as we're happy with the monthly investment we make into a global index fund and are unlikely to make changes or definitely not frequently.

Also Fidelity. Simple and cheap. I accidentally over-invested and they sorted it out very quickly and professionally.

you definitely don’t need any paperwork for lump sum investments and as far as I recall, they were happy with photos/scans of passport and birth certificates. Maybe something changed - I only started 12 months ago

We pay in a monthly amount via direct debit. Also it may have changed, as we started three years ago and last made a change two years ago. Either way, we are happy with Fidelity and would recommend.

I used Bestinvest as it was where I had my SIPP. I was happy with the service and investment choices, though I later transferred it to Hargreaves Lansdown for a wider choice.

I started a junior pension for DD when she was 4 and put in £25pm. I plan to continue to do that until she's 18, then it's over to her. I hope that it will be a good base to grow from, and hopefully give her more options when she gets to the point of needing it. She also has an ISA.

It's with Hargreaves Lansdown

I’m not sure if ours is technically a junior pension but ours all have Vanguard junior stocks and shares ISAs I think and the idea is they grow it until they’re 60 or whatever. Wish I’d had that!!

A junior ISA (JISA) is completely different to a pension, starting with access it and make withdrawals from 18

Sorry for the word salad: i meant they can access a JISA and make withdrawals from the age of 18.

Also, the government doesn't make a contribution to a Junior ISA like it does with a Junior SIPP. The government uplifts my £25pcm by 25% in my DD's SIPP, adding £75 a year to it.

What do you think £25 a month plus Government uplift would be worth by the time a child is 18… if you stop then? Sounds interesting thing to do.

According to Hargreaves Lansdown's calculator (www.hl.co.uk/pensions/junior-sipp/junior-sipp-calculator) my contributions from age 4-18, £24pcm, (£6,300 in total) will be worth £31,438 by the time she is 60 assuming 5% growth.
On 8% growth it would be £147k!!!

Ours are with Hargreaves Lansdown,

Thanks …. My children are older than 4, but that makes interesting reading!