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any tips for stakeholder pension for kids
surfsister
Posts: 7,527 Forumite
I was thinking of starting stakeholder pension for my kids and wonder if anyone has any idea which companies are best or where to look?
thanks
thanks
0
Comments
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My tip would be don't do it. You're tying the money into a restrictive product that may or may not be the best financial option for them.
Invest for them by all means but in a more flexible product that could be used for university/house deposit/retirement depending on what happens over the next 15-20 years.
Andy0 -
I would agree with Andy. 50-60 years in a product that the Govt tend to play around with every 6 years on average means that what you start paying into could be a very different beast when the children require it.
A regular contribution unit trust gives the same investment options but keeps the flexibility there.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I agree with the other contributors, don't do it.
I thought of this myself as I am great believer in pensions. I decided not to because I felt that if I set up an investment to help towards their university fees (if they go) or first home, then they will be in a better position to sort out their own pension plans once they're working. ie. it would have a longer positive impact on their lives than a pension would.
My own parents did the same with me and it worked a treat. Thanks Mum & Dad!0 -
Another " no " vote here. An investment plan with an investment trust or unit trust is far more flexible.0
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I think everyone has missed an obvious question........
Is the OP already making provisions (investments) for life expenses (uni, house, car, etc etc), if so, starting a pension is a useful and valuable addition. Additionally, if the family in question were fairly affluent it is a nice way of gradually reducing any IHT issues.
It could also be very useful if the parents feel the child may not be particularly financially savy.
(just a comment)
cloud_dogPersonal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
cloud_dog wrote:I think everyone has missed an obvious question........
Is the OP already making provisions (investments) for life expenses (uni, house, car, etc etc), if so, starting a pension is a useful and valuable addition. Additionally, if the family in question were fairly affluent it is a nice way of gradually reducing any IHT issues.
It could also be very useful if the parents feel the child may not be particularly financially savy.
(just a comment)
cloud_dog
Yes just thought that starting a stakeholder now would get some cash in ready for them ok for uni etc
so no ideas as to companies? thanks anyway guys!0 -
Resurrecting a very old thread.
I have opened stakeholder pensions for both my children. Both were opened when they were about 6 months old and are chugging along quite nicely.
IMO, a lot depends where your priorities lie, what your idea of priorities is and of course the biggie, your financial position.
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I know people appear very sceptial about pensions for children, not sure why exactly, but if you've got finances in place for the near term then providing for the long term seems sensible to me. I know I would start one if I had spare cash.Murphy_The_Cat wrote: »Resurrecting a very old thread.
I have opened stakeholder pensions for both my children. Both were opened when they were about 6 months old and are chugging along quite nicely.
IMO, a lot depends where your priorities lie, what your idea of priorities is and of course the biggie, your financial position.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
I'm keen to start a pension for my daughter (21 months) as part of an investment plan for the short & long term using her child benefit which we can cope without.
My question is how do you find companies which will permit you to invest say £20 month? I'm thinking of a UK Index Tracker but so far I've only found Nationwide & Friends Provident - any suggestions out there please?
Many thanks!0 -
My question is how do you find companies which will permit you to invest say £20 month?
All stakeholders offer 20pm as an option.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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