Child's / Grandchild's Pensions

LeeRex

Hi all,
I am unable to find any simple threads to explain the easiest and best low cost Child's Pensions...
I'm looking to start a 1 Year Old a Pension Plan, lets say I'll add £7.50 every month ( Additional Grand Parents, Parents etc may at times contribute also ). What I'm trying to find , is a plan that will not eat up minimal Deposit Contributions if they are small values, IE high Min Dealing charges/costs. Thank you

MallyGirl

Have you considered a S&S JISA?
The monthly sum might just be too small

kuratowski

The Fidelity Junior ISA (JISA) is low cost (no fees) but the minimum monthly contribution is £25.
Don't use a pension wrapper for a 1 year old child.  They will probably want the money before they are aged ~60.  Have you seen house prices?

LeeRex

£25 is a little too much every month.. I already have 3 Children myself which I also pay into, so need the option of minimum contributions.. Even if it's like an ETF Fund ( which I'm not savvy on either ).. I'll keep checking in on the thread to see if any Whizz's have some solutions.

Anonymous101

With regards minimum contribution, you could spread the contributions to suit. So if the min. is £25 maybe contribute every 3 or 4 months?

We have an ISA for our children and just top it up whenever we have something spare.

dunstonh

I am unable to find any simple threads to explain the easiest and best low cost Child's Pensions...

There is no such thing as a child pension.    Virtually all retail individual pensions are available for minors.

What I'm trying to find , is a plan that will not eat up minimal Deposit Contributions if they are small values, IE high Min Dealing charges/costs. 

It is highly unlikely you would go near investments that require a dealer for a child pension or anything of that sort of contribution.  Typically, you would stick with a mono charged plan only (i.e. AMC only).  The biggest problem you have is finding one that allows a contribution of just £7.50.    That is extremely low.  £20 is possible but at £7.50 you are probably counting the providers available on one hand.

kuratowski

If you had a lump sum (£500) to start it off, then you could open an investment account without monthly contributions (or alternatively, with contributions that are too small to meet the minimum levels).

If that is not possible, then I think you would instead be looking at a cash savings account in the child's name (could be a cash JISA, or not, look for the best rates).  At least for a few years, until the balance has grown sufficiently to be eligible to invest.

LeeRex

Thanks all, generally confirming my understanding. Appreciated

Marcon

dunstonh said:

I am unable to find any simple threads to explain the easiest and best low cost Child's Pensions...

There is no such thing as a child pension.    Virtually all retail individual pensions are available for minors.

There may be 'no such thing as a child pension', but it's interesting how many SIPP providers specifically market Junior SIPPs.

OP, this might be helpful reading (although a regular £7.50 a month doesn't seem to be an option - you'd need to contemplate less frequent payments - perhaps £25 a quarter?): https://moneytothemasses.com/saving-for-your-future/pensions/best-and-cheapest-junior-sipps

dunstonh

There may be 'no such thing as a child pension', but it's interesting how many SIPP providers specifically market Junior SIPPs.

I'm sure some would market their product as Chocolate SIPPs if they felt they could sell more.

AlanP_2

dunstonh said:

There may be 'no such thing as a child pension', but it's interesting how many SIPP providers specifically market Junior SIPPs.

I'm sure some would market their product as Chocolate SIPPs if they felt they could sell more.

My wife would max that out every year.