Thinking of starting SIPPs for my 3 & 5 yo

Westminster

Hi

I have a couple of young boys and would like to set up a pension for them instead of an ISA (with an older head on my shoulders, if given the choice now, I know I would rather have a healthy pension pot now than to have been given several thousand pounds to waste when I was 18)

I was thinking of putting in £50-100 per child per month and ideally to get the lowest possible fees (maybe a few ETFs tracking FTSE-250 etc)

Given the timescale, something with moderate risk would seem ok.

Has anyone seen any good articles etc they could suggest which could give me some direction?

Cheers

dunstonh

Most parents/grandparents tend to use stakeholder pensions when doing this. They tend to be low cost and simple. Rather than using advanced investor options in an advanced contract that the child will take on at 18. A time when they are unlikely to have a clue what or how investments work.

Is £50-£100pm in multiple ETFs worth the dealing costs and hassle in maintaining a cash account really worth it vs a simple stakeholder pension at 0.55%?

Westminster

A fair point.

I think because I am looking at moving my various pots into a SIPP for myself, I had not not thought about a stakeholder.

I'll check that out.

Many thanks!

xylophone

https://www.lovemoney.com/news/12558/best-pensions-for-children

may be worth a read.

A pension is fine ( and one was started for a young family member) but in conjunction with, not instead of, savings for earlier in life.