pensions for grandkids

Daj123

Can I start a Pension for my one year old grandson. Would this be better than putting a monthly amount in a saving account?

MallyGirl

Personally I would have thought that savings available at uni or first house buying time would be more useful to most, but maybe that is already in hand?

xylophone

You could start a pension for your grandson.

One assumes that (unless he is a child model/actor) that he has no earned income.

You can therefore pay up to £2880 per annum into a pension for him and he will will receive tax relief of £720.

Example

http://www.legalandgeneral.com/calculators/familyCalc.jsp

However, he will not be able to access the pension until he is at least 55 and he may have other expenses before that point, university fees and a home of his own for example.


His parents can look into opening a JISA for him (to which you could contribute) - the assets /cash would be available to him from the age of 18.


https://www.gov.uk/junior-individual-savings-accounts


If you are not happy about his having absolute control at the age of 18, you might prefer simply to regard one of your own savings accounts as "earmarked" for the child at a time of your choosing.

Dox

Daj123 wrote: »

Can I start a Pension for my one year old grandson. Would this be better than putting a monthly amount in a saving account?

Yes - a stakeholder pension is often a popular choice.

Whether this is 'better' than other types of savings arrangement depends on what you are trying to achieve.

luvchocolate

I have a regular saver for my 1 year old granddaughter only save £50 a month but all helps, another Grandparent has started a pension for her and her own parents have a stocks and shares I.S.A for her.
I think its all about spreading it over a few items.