Start a pension for kids

davep12345
davep12345 Posts: 35 Forumite
First Anniversary
in Pensions, annuities & retirement planning
Hi all,

I want to start a SIPP for my 6 year old son, however I can only stretch to £50 a month.
Any recommendations please ??
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Comments

  • ss53
    ss53 Posts: 90 Forumite
    You don't need a SIPP - a stakeholder pension will be simpler and cheaper. I used Aviva for both my daughters and had no problems with them.
  • davep12345
    davep12345 Posts: 35 Forumite
    First Anniversary
    whats the min £ PCM with Aviva ?
  • ss53
    ss53 Posts: 90 Forumite
    I think £20
  • xylophone
    xylophone Posts: 44,287 Forumite
    Name Dropper First Anniversary First Post
    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

    £20 a month.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    edited 19 October 2017 at 9:05PM
    +1 for the Aviva stakeholder via Cavendish for the accumulation period. It's a nice simple product with low costs and steady growth. We took one out for my wife who has limited interest in financial services and she is happy with it.

    The only disadvantage is that when you want to draw the pension (or hit age 75) then your only options are to buy an annuity or transfer it elsewhere. Still there are no exit fees and things might change in the next 69 years - your son might have changed product or transferred it into another pension by then.

    Alex
  • funnymonkey
    funnymonkey Posts: 233 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Hargreaves Lansdown do a children's specific pension.
    Would recommend
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I suspect your son would be better served by an investment that could be used to help him with his education or a house some 30-40 years before the pension will be available to him.

    Witha better education he can eclipse your savings from now til say age 18 in a year or two. And if he can’t do that due to his choice of career, then he’d get the benefit of housing help for many years before the pension would be accessable.
  • davep12345
    davep12345 Posts: 35 Forumite
    First Anniversary
    Where can I find info on the best companies to start a pension with, for my son.
  • cloud_dog
    cloud_dog Posts: 6,042 Forumite
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    edited 19 February 2018 at 11:41PM
    Define 'best'?

    I think you'll find some people have offered their opinions on your best options for your child for both pensions and other investment options.

    We've decided not to start a pension just yet. We're not flush with disposable income but we have chosen to do a monthly investment plan (£50pm), with the idea that come later in their teenage life we can either put this money in to a LISA or a pension (depending on the situation).

    There's also the consideration around the LTA when parents kick off early investments. By using LISAs you are making a provision to allow for full utilisation of the LTA should they be able to make full use of that during their life. And, for a basic rate tax payer there is little benefit of a pension over a LISA.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • louloubelle79
    louloubelle79 Posts: 411 Forumite
    First Post
    https://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/stakeholder-pension-for-children/
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