SIPP for one year old daughter?

dunstonh

buel10 wrote: »

On the application form for the Aviva stakeholder pension, it asks for the client signature....my daughter is 17 months old, what do I do here, please?

Read it again. I have done several Aviva stakeholders recently for minors and it doesnt ask for their signature. There is a box for parent/guardian.

pensionpawn

kidmugsy wrote: »

Unless it had to pay for your care.

Unless you update your will to place 50% of the property in trust on first death.

AnotherJoe

Alexland wrote: »

I am investing to help our son and unborn child with their education and property deposit so they get a good start in life. The benefit of locking away money into a child pension seem marginal after considering it will be taxed on withdrawal. Some of our S&S LISAs will be used for their property deposit as when I am 60 they will be early 20s. When we are gone they will inherit our property which they can use for retirement costs if they so wish.

Alex

^^^ this.

There's also around a 15% chance they wont even live to use it, whereas the odds they would live to use a pension will be far higher if they get a good education upon which much else - housing, health and living long enough to use a pension, are heavily influenced by.



No disrespect meant but someone who can only afford £20 a month shouldn't be locking that money away where it will do no good for a very long time, whereas if they get a good job because they got a good education, their pension savings will far eclipse that amount even allowing for 20 or 30 years of growth.


And when she's in a poorer university or bad accommodation than she could have been she's not going to thank you when you say 'dont worry in 40 years time you'll be able to afford a nice retirement flat'.


No sugar coating it, this is a terrible idea in your circumstances. Sipp/pension should come last after you've used up nearer term opportunities to enhance her life. Save enough to enable her to have a decent start with uni, to pay for tuition at school if its needed, or a deposit or part deposit on a house, dont lock it away for decades.

pensionpawn

I agree with you about balancing the short (education) and medium (property ladder) needs with the long (pension), and the fact that someone may no live long enough to benefit from this gesture. I don't believe that the OP said he was down to his last spare £10 - £20 so they can probably invest (a larger amount) in some shorter term investments too. Time, as we all know, is you best friend in pension planning and some quick sums demonstrates this. £10 per month over 60 years at 7.5% over inflation (who knows, finger in the air...) equates to £160k, £20 obviously £320k. That does free up some income in your initial career that could go towards a deposit etc. Of course, still match your employers contributions. Getting the balance right is the key, never easy and not always achievable.

CheesePlant

I have two daughters, I personally would much rather invest via a vehicle that means they can use the money to get on the property ladder or fund themselves through university (if we can't) than invest for their old age. I'm also concerned that the age at which a person can access their SIPP could increase even higher from 58 which it is currently. I have two HL share accounts held in trust for my children (which won't automatically revert to their control at age 18 like a JISA would). In my case this money was gifted by a grandparent so is not taxed as if it was mine. I also have stocks and shares ISAs in my name that will likely in part be used for the children but which I have retained control of for flexibility.