Pension for a new Grandchild

AnotherJoe

Merlin139 wrote: »

If he does not see any of the money we are putting away for him for 55 to 60 years what does it matter.

It means that you completely wasted it, it means he didn't get to enjoy it while he could, it means he didn't get the benefit for education, training, a house, his kids whilst it could make a difference, and you didn't get to see him benefit from it at all either.

Other than that, yep in the big scheme of things "it don't amount to a hill of beans" as Mr Bogart said but in that case why bother at all ?

cloud_dog

As a number of people have suggested it may be wiser to refrain from utilising money towards a pension at this time, unless the holistic family are sufficiently wealthy to also make plans for more near-term requirements (university, house, whatever).

If I were in your shoes I would aim for flexibility, and by that I mean no one knows what the grandchild(ren) will need in 18 years time?

You could always split the money if you wish, i.e. open an Aviva Stakeholder personal pension via Cavendish (£25pm), and invest £75 elsewhere (perhaps in your name(s) but assigned for the grandchild(ren)), or find out if the grandchild(reb) will have a JISA and once the parents have set it up set up your own contributions.

Blackbeard_of_Perranporth

I would provide a foothold for the grandson for when they start work, this would ease their start in work. Then they will be more able to afford for their pension!

Kynthia

It's depressing to think about, but so far three out of eight on my mum's side have not made over 60 years along two out of seven on my dad's side (and there's time for that number to increase). So money for education, housing, travel, childcare, etc would be something I'd prefer to money when I might not live to see it and don't need as much due to having already sorted myself a decent pension. Is it because you worry about them wasting the money when they're 18 and a pension is the only way of looking away until they're older?

However a Stakeholder pension would meet your needs. I'm assuming you can't open a LISA for a child.