Setting up a pension for my young adult child

[topcat2014]

DD is at Uni. I would like to set up a pension for her, with a modest monthly contribution that I will pay. Has anyone done this, if to who with?

This is a kind thought, but I think you'd be giving her money at the wrong time of life. She'll presumably be graduating with student debts, into a difficult jobs market for the young, and high housing costs. By the time she's retired, she may have a successful career behind her, and her own pension savings, but many in their 20s really struggle. I'd do her a regular contribution ISA instead.

My Mother did it for her Grandchildren maybe thirty years ago.

I think it was set up through St James Place though these days the sum invested is with Scottish Widows. Paid in £500/year for each of them plus the tax was reclaimed.

Nothing paid in since Mum died but they'll have a nice little nest egg at whatever age it becomes accessible.

disagree with PP - the beauty of compound investment is a wonderful thing. Even if it’s only £20 a month your children will thank you in future (probably after you’re long gone). I do this for my kids with a stakeholder pension via Aviva.

however I wouldn’t do this instead of more immediate savings, which my kids are lucky enough to have

I've done it for my children. I've used Penfold. It's very easy.

Hi - Vanguard is a very easy and low cost platform to use for both pensions and ISA's. There are cheaper alternatives, but this is the choice I made for both children. Good luck !

...and I would stay miles away from both Scottish Widows (check out Scottish Widows Complaint Platform on Facebook) and the very high management costs of SJP too x

Pick a decent fund and you can’t go wrong, my modest pension from 4 years in my early 20’s (think £50 a month) is worth a pretty penny now

I've been thinking about this as well. My DS graduated last year but hasn't been able to find work in his field - he's working part-time in a pub. He's 24 now and I have been thinking about a SIPP. As a adult, he would need to set it up himself, but it's my understanding that I could pay a maximum of £3600 per annum into it - except I'd only pay £2880 and the rest would be made up in tax.

I'm in very early stages of looking into this. Apparently not all pension providers permit third parties to pay into them, but many do.

My own plan is to retire next year, so pensions are very much on my mind, and I've very aware that DS is missing out on the vital early years of paying into a pension and I want to help him out.

I'm only thinking of maybe £50 per month. I know about all the other big life costs. I kind of want DD to know that she always has or had a pension, rather than be tempted to opt out etc on the basis that it's forever in the future.

I'll have a look at the options given, thanks!