Children's Pension

solarstone

I regularly save for my daughter, aged 10, already into a children's saver account.

Thinking ahead somewhat, what I also want to do is to start a Children's Pension for her. Does anyone have any experience of this, or any words of wisdom?

I've looked briefly at VirginMoney's offering

xylophone

I regularly save for my daughter, aged 10, already into a children's saver account.

Unless in tax privileged account like CTF be careful of the tax treatment.
http://www.hmrc.gov.uk/tdsi/children.htm

Children's Pension

Aviva, Legal and Ceneral, Standard Life,

or HL Junior Sipp perhaps?

ozzage

I recently opened a Hargreaves Lansdown Junior SIPP. Just paying the £40 minimum per month (grossed up to £50) into a single fund. There are no additional fees (and the fund is not a tracker) so it's a very cheap option. HL is now also paying rebate on funds in SIPPS (once over £1000)

There are possibly cheaper options (with a higher rebate) but I like the HL website for management and I can link it to my own account when I log in.

She's now 5 weeks old, so this should give her a good head start for her retirement fund by the time she's 18 without too much expense on our part.

atush

It seems like so far you have been saving in cash. Which is fine, but I agree you need to save into equities for her long term.

but if that should be in a pension (or all in a pension) I am not so sure of. I am thinking that huge outlays of higher education/university might take preceidence over what will happen to your child in retirement. Esp as education can lead to a better job and prospects in life.

So, i'd save into an equity CTF, or an investment trust savings plan for your child.

xylophone

investment trust savings plan for your child.

Again, be careful of tax treatment.
http://webarchive.nationalarchives.gov.uk/20121015000000/http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

atush

Again, it is a good idea. I wasn't mentioning tax at ANY point.

I am beginning to take offence.

xylophone

I am beginning to take offence.

Why? It is a fair warning surely? Not everybody understands or knows the rules.:)

atush

You do it after every post i make. And it is irritating.

xylophone

You do it after every post i make. And it is irritating.

You often answer questions of this type presumably because you have saved for your children - which is fair enough.

However, you do not always seem to have appreciated the complexity of UK tax rules in this area and it may be that new posters don't either.

Just a word to the wise, as they say.:)