Kids Pension provider suggestions.

StuAnder

First time poster so please be gentle!
I'm looking for recommendations for a kids pension provider, I have a 7 & 4 year old and I am looking to invest around £40 pm into each product. Taking advantage of the government automatically topping up the pension pot by 25% and with it being accessed at 55 years of age.

An internet search finds only a "Virgin money" children's product, with a straightforward option where they invest in products for you. I'm not really bothered about going to an IFA for advice and paying commission for the 48 years till the first product can be accessed. Plus the 25% top up etc is a good starred for 10 for such a long investment period.

As much as I am "happy" to go with "Virgin" its the only 1 I have found, would have been nice to have located other big high street companies as well, for a straight forward policy.

Any advice / suggestions will be appreciated.
Thanks for reading
Stu


Pension Growth Fund invests in UK-based shares
The Pension Bond and Gilt Fund invests in corporate and government loans known as bonds and gilts. Interest paid on these loans is automatically reinvested in the fund. We only select highly rated bonds from household names like Legal & General and Rolls-Roy

dunstonh

Taking advantage of the government automatically topping up the pension pot by 25% and with it being accessed at 55 years of age.

Technically, it is not a top up. It is a relief. You make a gross contribution and you get 20% relief to that contribution. It is always best to refer to correctly as we have seen people refer to it as a top up and over pay the allowed amount by mistake.

I'm not really bothered about going to an IFA for advice and paying commission for the 48 years till the first product can be accessed.

What commission?

An internet search finds only a "Virgin money" children's product,

Virtually all pensions cater for minors. It isnt a special product type.

BTW, your fear of commission has lead you to a product that is more expensive than what an IFA would use. So, if you went with Virgin you would be paying a lot more over those 48 years.

I am not saying you should use an IFA. This is the sort of transaction we do free of charge for existing clients but would turn away for someone new. Just that your lack of understanding is leading you to a more expensive option.

Keep_pedalling

What other provisions are you making for them? They have plenty of time to make their own pension arrangements, but are more likely to struggle with things like house deposits, so unless you are also saving for financial requirements earlier in life I would not be looking at pensions yet.

AnotherJoe

Don't do this.
Invest in shorter term products that will help them with education, jobs and housing from their late teens onward.

That will then stand them in good stead to get their own pensions by leveraging that early help.

There's no sense locking away your money for another 60 or so years (it wont be age 55 by the time they get there) before they can access it when it could be used to much better effect nearer term, and if you have pensions and property, they will get that and can use as their pensions when you die anyway.


The only reason to do this would be if you've already exhausted every other savings vehicle for them - JISAs, higher rate childrens savings accounts, even just saving in your name for when they want education, job , property help. And the fact you are looking at saving just £40/month says you haven't.

xylophone

https://www.moneywise.co.uk/pensions/starting-your-pension/should-you-start-pension-your-kids

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

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

I was once a trustee for a minor - he did have a stakeholder with the Pru but before that was considered, he also had savings and investments for the shorter term future.

louloubelle79

Mine have stakeholder pension with Legal and General

craig1912

Aviva Stakeholder through Cavendish online

StuAnder

Thanks for the replies and advice etc. I'll look more into the suggestioins etc.
I possibly should have initially mentioned that this was "just something else" long term, getting dripped into, that I was wishing for the kids. They have a £240K house and a £110K rental flat both mortgage free and a second BTL £110k flat, probably mortgage free in time and whatever savings I had etc, ultimately heading their way. They have various ISA's, Halifax regular kids and the Halifax instant saver paying 3% , short term, already.