Pension for 8yr old daughter..where to start

m_c_s

I would like to start thinking about this but not sure whether this can be done and if so what options are there?


Any help would be appreciated.

david78

You can open a stakeholder pension for her from any provider.

You can invest up to £2,808 each year, net of tax. HMRC will add 22% basic rate tax relief to this, bringing the total amount invested up to a maximum of £3,600 each year. (From next year the numbers change a bit as the tax relied drops to 20%).

Andy_L

It can be done, however your 1st decision should be is it a good idea compared to the alternatives, considering that the pension offers minimal tax benifits to a nill/basic rate tax payer, can't be used for University/House deposit and (on the really gloomy side) may never be of any benefit to her

m_c_s

Thanks for your thoughts , I need to consider this further.

michellenealemum

hi don't know about a child pension but myself and hubby are seriously looking into this http://www.fool.co.uk/10steps/financialfreedom/9.htm
hope it gives you a little more to think about.
michelle

dunstonh

I personally do regular contribution unit trusts.

EdInvestor

Sometimes those Fool articles, though on the right track in general, can contain very misleading bits eg

if the stock market is too risky for you, consider an index tracker

An index tracker is one of the riskier ways of investing in the stockmarket. :rolleyes:

m_c_s

Thanks for the additional info.