can i start a childs pension?

rockrat

i have two kids, aged 10 and 8.

i would like to see if i can help them with a small pension pot for when they retire, by using the compound trickery of time, which they hopefully have lots of.

basically i was hoping to dump a few thousand pounds into some form of "pension/tracker" that sits there accruing value up till they reach retirement age.
i dont want them to have access to it until then though, and i would obivously want it tax free.

is this possible?

dunstonh

yes it it. A personal pension or stakeholder pension would meet that need.

rockrat

dunstonh wrote: »

yes it it. A personal pension or stakeholder pension would meet that need.

which one should i look harder at?, and any advice on where best..

.....oooo.....thinking about this a bit harder, can i open a SIPP in their name where i can be active in fund/share selection and even use this as a tool in involve the kids in their own financial future? And if so, then which is the best outlet..i expect the usual HL, iii, selftrade....which is best?


(PS Dunstonh - can you look at a PM i sent a few weeks ago if poss)

Andy_L

Yes you can, however is this a better idea than investing outside the (restrictive) pension wrapper which "by using the compound trickery of time" could pay for university education/house deposit/starting own business etc etc?

knuckledragger

The pension route means that they don't get to blow the cash at 18 on whatever they want. Effectively they won't get a return from it until 55. But what a return! Lump sum plus a monthly amount until death. Perhaps enabling them to become part time? Fanciful, but achievable.