child pension

someday_soon

Hi
I am looking to start my children off with their pension. The amount to invest initially will be small, just £30 per month each which will come from the allowance I provide. They will hopefully increase this amount over time, add occasional lump sums and further as they move into employment. I am not an active investor (small company pension and will have keeled over before I get the state pension the way it is going) and wouldn't know where to start with selecting and balancing a portfolio. I think that is what a SIPP is. I had a look at HL as I've heard their charges are quite low, but they seem to just offer SIPPs. To be clear, I would like to get spread accross as much as I can to attempt to get the stockmarket historical 7% for long term investing. Hopefully one or two sages can help me here?
Thanks.

dunstonh

I had a look at HL as I've heard their charges are quite low

You mean quite high. Although for small amounts, they are not too bad.

However, do you really want to give a child the complicated experienced investor option? I always use stakeholder pensions for children's pensions.

xylophone

A simple stakeholder would probably suit your purpose.

https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

A pru stakeholder was opened for a young relative when he was a minor - years later he transferred to a SIPP which he now runs alongside a DB pension.

FatherAbraham

someday_soon wrote: »

Hi
I am looking to start my children off with their pension. The amount to invest initially will be small, just £30 per month each which will come from the allowance I provide. They will hopefully increase this amount over time, add occasional lump sums and further as they move into employment. I am not an active investor (small company pension and will have keeled over before I get the state pension the way it is going) and wouldn't know where to start with selecting and balancing a portfolio. I think that is what a SIPP is. I had a look at HL as I've heard their charges are quite low, but they seem to just offer SIPPs. To be clear, I would like to get spread accross as much as I can to attempt to get the stockmarket historical 7% for long term investing. Hopefully one or two sages can help me here?
Thanks.

I've used Cavendish Online to set up a minor's pension at low cost with Aegon.

An HL SIPP sounds like massive overkill for a child.

Warmest regards,
FA

justme111

Do not Cavendish have like £100 a year charge for a pension wrapper?

dunstonh

justme111 wrote: »

Do not Cavendish have like £100 a year charge for a pension wrapper?

That would be platform Cavendish. Not old fashioned discount broker Cavendish.

justme111

xylophone wrote: »

A simple stakeholder would probably suit your purpose.

https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

A pru stakeholder was opened for a young relative when he was a minor - years later he transferred to a SIPP which he now runs alongside a DB pension.

Sorry I fail to see how 0.55% for this one(is there a charge for funds on top of it btw) and selection of funds bound to be more limited is better than 0.45% at HL.
Dunstonh, I could not understand your post, sorry. I know only one Cavendish discussed here, https://www.cavendishonline . It is a discount platform in my understanding.

bigadaj

justme111 wrote: »

Sorry I fail to see how 0.55% for this one(is there a charge for funds on top of it btw) and selection of funds bound to be more limited is better than 0.45% at HL.
Dunstonh, I could not understand your post, sorry. I know only one Cavendish discussed here, https://www.cavendishonline . It is a discount platform in my understanding.

The fee for teh stakeholder should include all charges, the 0.45% fee needs to have hl charges added to it, so 0.9% in total.

Cavendish offer a platform that is effectively a white label version of the fidelity platform, they also offer access to individual insurers stakeholder or personal pensions.

dunstonh

Sorry I fail to see how 0.55% for this one(is there a charge for funds on top of it btw) and selection of funds bound to be more limited is better than 0.45% at HL.

Stakeholders are mono charged. i.e. just one charge. So, a 0.55% stakeholder pension is all in.

HL charge 0.45% for the platform charge and have investment charges on top and a menu of other charges for various things as well.

The main reason for stakeholder is simplicity. Do you want an 18 year old to get a SIPP where they have to operate a cash account and can decide on investments that could lose the lot overnight? They cannot make catastrophic mistakes with a stakeholder. And if and when they ever do become ready to move to something more advanced, then the stakeholder has no exit charges.

louloubelle79

Also looking to set up children's pension, Still advise cavendish stakeholder? Thanks

louloubelle79

Sorry to bump again and ask as looking at all options on Cavendish-can anyone advise re stakeholder or private pensions with Aviva or Aegon? Would be putting in minimum monthly of £20 per child.