Paying into child’s pension

[CupcakesK]

I’ve read a few things on here recently about people starting a pension fund for their young children. I’m interested to know more - I can see the benefits in terms of accumulating a good pot for their retirement fairly easily.

However, it’s so new to me I’d feel a bit odd setting up a pension for my one year old. Is it enabling them to be more frivolous with money as adults as they will know their pension is set? Or prudent as work place pensions are not as good as they used to be?

For background info: we are mid-earners and already save £80 a month for DS that we have control of to help pay for uni/driving lessons etc. and are lucky that his grandparents have set up an ISA paying in similar amounts that he will get when 18. We could probably afford £20-£50 a month to pay into a pension

Bump

I wouldn't - you're much better off just saving it (if you have several thousand then a stocks and shares ISA is probably best for long term gains).

There's a cap on lifetime pension contributions, if your DC becomes a high earner then this might cause them to breach it and get stuck with an enormous tax bill.

Thanks, I hadn’t thought about the cap on pension contributions