SIPPs for children - difference of opinions with OH

Notepad_Phil

NedS said:

Is the lifetime allowance a concern? If parents/grandparents plough significant amounts of money into a childs SIPP, may that not go on to impact upon what they may be able to pay into their pension in later life due to the lifetime allowance should they be good earners? A few hundred gifted from grandparents probably isn't an issue, but if regular contributions were going in from birth, starting so young, with so many years to compound?

Possibly it might prove to be a concern - but what a nice problem to have.

RNV

Thanks All for more thoughts.

Although access at 55 is missed now, at 57 may still be a gem in comparison with the situation in decades time. I will add this to my "pros" column when next raising this with OH.

It has never been an intent to contribute anything notable on the scale of pensions,  so no even a remote risk to impact their life time allowances.   Just thought if they have something already open, might be easier to start contributing to it early enough in their working lives; also to smoth a bit an impact if they don't or only contribute a bare minimum until get wiser [like me, only realising at 40yo how inadequate my DC pot was for my age]

DT2001

If you inherit a pension I do not think it affects the beneficiaries LTA and the income/capital is available straight away so maybe best to ensure you use your own allowance to the full. I have 3 distinct ‘pots’ on one platform so you could ‘ringfence’.