Pensions for children.....

bigfreddiel

as a general rule its been said you should take your age, halve it and use that as a percentage of your salary to pay into a pension - so at age 30 you would be paying 15% each and every year - you don't keep increasing it each year as you get older.

so for a 2 year old you would only have to pay in 1% of some nominal salary - lets be generous and say she's earning £50k - so that means paying in £500 for the year - thats only £10 week.

and thats it - nice and simple - and a nice pension at the end of the day

as a backup i would also max out a jisa (for one year only) in a cheap all share index tracker and leave it - she may blow it all when she's 18 but maybe not and then i would move it to an isa still a low cost all share index tracker and just leave it for the next 50 years

easy innit!

RosieBee_2

Hey

the latest news is suggesting that children may only get to retire once they celebrate their 80th birthday, so in actual fact thinking about saving into a pension may not be a bad idea. Was hearing something about SIPPS, and children's SIPPS.

its definetly not a bad idea thinking about their long-term future. especially if retiring at 80 will become reality... will leave these kids little to no time to enjoy their golden years

dunstonh

Was hearing something about SIPPS, and children's SIPPS.

That is just marketing. Children's pensions do not exist generically. Children can have the same stakeholder, personal pensions and SIPPs that adults have.

It is quite popular with grandparents to place assets into pensions for grandchildren (especially from income for estate planning) as they can provide a legacy for the child that will benefit them long after they have gone.

Sceptre

RosieBee wrote: »

Hey

the latest news is suggesting that children may only get to retire once they celebrate their 80th birthday, so in actual fact thinking about saving into a pension may not be a bad idea. Was hearing something about SIPPS, and children's SIPPS.

its definetly not a bad idea thinking about their long-term future. especially if retiring at 80 will become reality... will leave these kids little to no time to enjoy their golden years

I know, it's scary isn't it! I'm not telling anyone - except you guys of course - they'll think I'm mad! It feels like the right thing to do though.

rpc

RosieBee wrote: »

Hey

the latest news is suggesting that children may only get to retire once they celebrate their 80th birthday, so in actual fact thinking about saving into a pension may not be a bad idea.

Not quite. There are no plans to move the retirement age (currently 55 minimum) but the state pension for my kids is likely to be about 80 based on current forecasts. I don't fancy them having to work that long so will shortly be starting up stakeholder pensions for them. They will also have IT savings plans to draw on at a much earlier age (like atush, I'd rather see them through uni debt free if we can)

atush

If projecions are that children won't retire til 80, that means they will be living to more than 100. Life expectancy does increase over time. So they would be much healthier 80 yr olds. And in any case, I actually know people working into their 80s by choice.

kidmugsy

westy22 wrote: »

...pension contributions for a child ... they will not need to pay so much in to their pensions when they are in their 20s and 30s and need most of their salary for home buying and children.

If I may say so, that's a pretty good point.

Starbrite

Wow what a brillinat idea

I don't have kids but if i do or did, I would open up a pension for them.... If you put the yearly max amount of £2,880 (as it stands today) x 65 years = 187,200

Thats a healthy pot even without interest and all the other add ones that come into play! (In todays money)

I think you little boy will be very grateful when he can retire and all his peers are slaves to the rat race still