Pension for teenage children

Murphy_The_Cat

I am in the fortunate position of having some money available that I'd like to put into a pension for my teenage children.

My intention would be to put £2880 into each pension for this year and hopefully next.

I'd ideally like to put it into  a tracker fund  like this one

or a very similar one that is offered by another provider, like L&G World Ex UK Equity Index

Please could someone point me in the right direction for a cost effective and efficient way to do this ?

Initially I thought that it would have been a simple matter of going directly to Vanguard, but if I've read correctly, the children would need to be 18 or over to start a pension with them.

As they already have an existing small pension with L&G, would that be a good place to start to look ?

barnstar2077

Could you put the money somewhere else, like an ISA in your name, until they are 18? 

Murphy_The_Cat

barnstar2077 said:

Could you put the money somewhere else, like an ISA in your name, until they are 18? 

They already have JISA's running. This would be something that with HMRC's contribution and the miracle of compound interest over 50+ years, would give them a very nice start to their pension.

craig1912

i started a Cavendish Aviva Stakeholder for my son when he was 16. Just about to transfer it to AJ Bell and let him take more responsibility for it.

craig1912

and just checked and AJ Bell do child Sipps

Murphy_The_Cat

craig1912 said:

and just checked and AJ Bell do child Sipps

Thank you Craig, that was just the pointer that I was looking for.

xylophone

As they already have an existing small pension with L&G, would that be a good place to start to look 

Will you transfer to the new SIPP?

cloud_dog

Murphy_The_Cat said:

I am in the fortunate position of having some money available that I'd like to put into a pension for my teenage children.

My intention would be to put £2880 into each pension for this year and hopefully next.

I'd ideally like to put it into  a tracker fund  like this one

or a very similar one that is offered by another provider, like L&G World Ex UK Equity Index

Please could someone point me in the right direction for a cost effective and efficient way to do this ?

Initially I thought that it would have been a simple matter of going directly to Vanguard, but if I've read correctly, the children would need to be 18 or over to start a pension with them.

As they already have an existing small pension with L&G, would that be a good place to start to look ?

If a pension is the vehicle you want to use, then I would suggest you go to Fidelity as they have removed their platform costs for child SIPPs.

You may also want to consider switching their JISA to Fidelity as well, if it is a S&S one, as they also no longer charge a platform fee for Junior ISAs.

Overall results if you invest in UTs/OIECs is zero additional costs (above fund costs).

Murphy_The_Cat

xylophone said:

As they already have an existing small pension with L&G, would that be a good place to start to look 

Will you transfer to the new SIPP?

Its something to consider. The existing L&G pensions haven't seen any activity for a while so it''ll be interesting to see what they're now worth.  In all honesty, my knowledge of the world of SIPP's is quite limited.

Murphy_The_Cat

cloud_dog said:

Murphy_The_Cat said:

I am in the fortunate position of having some money available that I'd like to put into a pension for my teenage children.

My intention would be to put £2880 into each pension for this year and hopefully next.

I'd ideally like to put it into  a tracker fund  like this one

or a very similar one that is offered by another provider, like L&G World Ex UK Equity Index

Please could someone point me in the right direction for a cost effective and efficient way to do this ?

Initially I thought that it would have been a simple matter of going directly to Vanguard, but if I've read correctly, the children would need to be 18 or over to start a pension with them.

As they already have an existing small pension with L&G, would that be a good place to start to look ?

If a pension is the vehicle you want to use, then I would suggest you go to Fidelity as they have removed their platform costs for child SIPPs.

You may also want to consider switching their JISA to Fidelity as well, if it is a S&S one, as they also no longer charge a platform fee for Junior ISAs.

Overall results if you invest in UTs/OIECs is zero additional costs (above fund costs).

Thank you so much

jamjar92

Been thinking about this recently, if I pay into the fund on the child’s behalf do they get my tax relief? Looking to move the CTF into an ISA S&S before she is sixteen.