Do I bother with Junior SIPPs?

cloud_dog

Quidditch said:

I am hoping that there is an uncomplicated answer to this.

I am a high rate tax payer with my own SIPP. I don’t currently max out my annual allowance. I am looking to invest for my children’s future and came across a Junior SIPP. I am wondering why I would opt for that when I could just pay more into my own SIPP. This means the full 40% tax relief and control over when, how and if I give them the funds.

Can you please share your thoughts. Thanks in advance.

I think the general consensus is that paying in to a SIPP for a child can be useful, but that there are nearer term needs that are likely to offer better, longer term benefits than 60 years of investment returns, e.g. money to support them during their early years (e.g. private tutor if required), during University, etc.  Secondly, perhaps giving them a helping hand onto the property ladder, etc.

Full disclosure, we did start a SIPP for ours when they were c. 16 or 17, but only contribute a minimum amount, and this was primarily aimed at ensuring there was something up and running, rather than to maximise any tax efficiencies or growth returns (as such).