Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • hazyfish
    • By hazyfish 10th Jul 17, 8:52 PM
    • 6Posts
    • 0Thanks
    hazyfish
    A pension for my 7yo child?
    • #1
    • 10th Jul 17, 8:52 PM
    A pension for my 7yo child? 10th Jul 17 at 8:52 PM
    hello all, i'm pondering starting a pension for my 7 year old child.
    is this a good thing to do? who knows what the pension climate will be like in 60 years - i imagine both pros and cons for starting a pension now.
    And if yes, any recommendations for a good company to go with?
    Thanks v much.
Page 1
    • atush
    • By atush 10th Jul 17, 8:56 PM
    • 16,156 Posts
    • 9,851 Thanks
    atush
    • #2
    • 10th Jul 17, 8:56 PM
    • #2
    • 10th Jul 17, 8:56 PM
    Well yes, it can be a good idea.

    But a JISA is a good idea too. Think of all the expenses your child will have before retirement. Such as University, a house, wedding, children etc.

    So dont JUST do a pension, save elsewhere for them too.
    • Alexland
    • By Alexland 10th Jul 17, 9:08 PM
    • 64 Posts
    • 37 Thanks
    Alexland
    • #3
    • 10th Jul 17, 9:08 PM
    • #3
    • 10th Jul 17, 9:08 PM
    I considered it for my son but decided that the tax benefit was marginal and could be completely removed if there are future increases in pensioner income tax and reductions in the tax free lump sum.

    However investing young has many advantages in terms of riding out periods of loss and compounding returns. I decided to do a S&S Junior ISA with Orbis Access as they are running an offer where fund units bought in the first 12 months (which can cover 2 tax years) have no fees until 18yrs old. I will probably move it to cash or a safer Vanguard fund once he is 14 to moderate down the risks of investing.

    Also I am saving for my son in my Nutmeg LISA (with a £1k pa bonus) as when I am 60 he will be 24 and looking for help with wedding, house deposit, etc.

    Alex
    • TomSurrey
    • By TomSurrey 10th Jul 17, 10:11 PM
    • 20 Posts
    • 16 Thanks
    TomSurrey
    • #4
    • 10th Jul 17, 10:11 PM
    • #4
    • 10th Jul 17, 10:11 PM
    Say you put £20k in a pension, leave it there for 65 years @ 6% growth it will be worth 882k, thats without the initial £20k being tax deductible, i'm not sure if it would be or not?

    Assuming 2.5% inflation over that period £1 now would be worth £5 in 65 years time.

    I'd say putting a few quid aside now in a pension could be an incredible decision to protect them against there almost certainly not being state provision for anyone with any form of wealth in the future.
    • purdyoaten2
    • By purdyoaten2 11th Jul 17, 10:30 AM
    • 615 Posts
    • 271 Thanks
    purdyoaten2
    • #5
    • 11th Jul 17, 10:30 AM
    • #5
    • 11th Jul 17, 10:30 AM
    Say you put £20k in a pension, leave it there for 65 years @ 6% growth it will be worth 882k, thats without the initial £20k being tax deductible, i'm not sure if it would be or not?

    Assuming 2.5% inflation over that period £1 now would be worth £5 in 65 years time.

    I'd say putting a few quid aside now in a pension could be an incredible decision to protect them against there almost certainly not being state provision for anyone with any form of wealth in the future.
    Originally posted by TomSurrey
    I am, definitely, no pension expert but surely £2880 (to become £3600) is the maximum annual contribution for a non-earner? If not, I would be pleasantly surprised.
    purdyoaten lost his password
    • OldBeanz
    • By OldBeanz 11th Jul 17, 11:38 AM
    • 657 Posts
    • 486 Thanks
    OldBeanz
    • #6
    • 11th Jul 17, 11:38 AM
    • #6
    • 11th Jul 17, 11:38 AM
    A friend took out a stakeholder pension for his kids 16 years ago. £16pcm and they are now each worth £9k. The older ones are now incorporating them into their company pensions and it is making them think long term and that they have a good start. Job done.
    • justme111
    • By justme111 11th Jul 17, 12:00 PM
    • 2,751 Posts
    • 2,638 Thanks
    justme111
    • #7
    • 11th Jul 17, 12:00 PM
    • #7
    • 11th Jul 17, 12:00 PM
    I will tag on with my question - any recommendations/observations on a child SIPP that would have L&G multi asset fund with minimal contributions (about £50 monthly) - what provider ? suggestions of other fund would be welcome as well. I looked it up briefly and it appears that HL is the cheapest option with no charges on SIPP wrapper and funds buying.
    Silly question - is L&G multi index the same as L&G multi asset?
    Last edited by justme111; 11-07-2017 at 2:24 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,282Posts Today

7,761Users online

Martin's Twitter