Do you have a pension for your child?

[SayWhatNowNow]

If you have a pension for your child please can you share details of the provider you chose? Would you advise for or against? Thinking of opening one for my children. Even more put if £5 a month or whatever. They are under 18. I’m thinking this would motivate them to start saving for their own pensions as soon as have their first jobs.

*even if I put in

Why a pension and not a JISA?

Both are tax shelters but the difference is that with a JISA, they get their money at 18 but for a pension, they get it when they retire.

I already have JISAs for them. I just want to encourage them to start planning for their retirement as early as possible. Can you tell I’m a worrier?

Can't afford a pension for mysellf let alone kids

Yes, we have pensions for our children. One is with Aviva and the other Clerical Medical (got them at different times, and took independent financial advice each time). Have had them for over 10 years now.

Thank you Jerble! Do you have a preference for either company?

I have savings accouts for DC, never even considered a pension. Watching with interest....

Best to seek the advice of an IFA. They can also advice on the tax benefits of contributing to a pension for your child. There is massive choice of pension funds to choose from, whether Aviva, Aegon, Scottish Widows just to name a few. These companies also have pension/fund platforms that allow you to choose which funds to invest in and they are not just their own funds but other pension providers as well. Hargreave Hale is a common name but I tend to steer clear because their charges are relatively higher.

Hargreave Lansdown

HL?

Go to unbiased.co.uk and get independent advice from a professional

Thank you all, much appreciated.

We just use YouInvest to manage all SIPPs and ISAs. It’s very easy as you get an overview of the whole family’s portfolio in one place.

I didn't know saving a pension for your children was a thing people did. I save for my own pension from my salary and expect they will do the same.

I haven't, mainly because I am saving for my own future and not my children's. I have thought about it though.

I didn’t know you could do this either.

I have a savings account for DC and pay into my own pension. Didn't even think about pension for DC

Anyone can have pension contributions of up to £3,600 (gross) per year for which HMRC contribute the tax relief (whether the individual is a taxpayer or not). So you "only" need to pay £2,880 and tax relief takes it up to £3,600.

I also like YouInvest. It's as easy to use as any of the other and the fees are very competitive.

I've been putting savings away for my DD I find this know you could start a pension

Any recommendations please?

Yes, started one for DS about two years ago. I think it’s with aviva.

Could anyone explain the benefits of this over savings/JISA. It’s not something I was aware of but it’s interesting.

Following with interest as this has never crossed my mind

Never realised this was a thing ... surely that’s up to them to sort out once they’re working.

Yes I have a pension for dds. As a pp said, if you contribute £2880 a year for a child (who is a non taxpayer) to a pension the government will top it up to £3600. So effectively you are getting £720 from the government every year as a contribution. Also with compound interest a pension started young (even with smaller contributions) is hugely advantageous.

I do have a JISA for them too but I am worried if there’s too much in it, dd will burn through it at 18. At least they will be as sensible as they will ever be by the time they draw a pension.

I used Aviva for a cheap stakeholder.