Kids pensions

NormalNorman

artyboy said:

NormalNorman said:

artyboy said:

Albermarle said:

JamesRobinson48 said:

Your intentions are admirable.  And your plan seems highly efficient from a family tax planning point of view.

But personally, I decided against when this opportunity first became available many years ago.

Depending on your children's ages, it's going to be 40-50 years before the children can access the pension.  Before locking the money up for so long, I'd want to be very sure that neither I, nor the children, will need that money for anything else (home deposit, car, college fees, etc) beforehand.  

I feel this one is most suited to seriously rich people, who already possess sufficient resources to fund their extended families for decades to come. And I'd be interested if anyone knows how many people are putting into pensions the £2880 annually for kids.

I also avoided doing this, due to the very long time scales involved.

Ditto. Well, that and the constant tinkering that successive governments have done with pensions legislation. I'd have zero confidence that a 40/50 year investment would be safe from future negative changes.

I do echo the sentiment about admirable intentions though. I just wonder, would they have an indulgent grandparent or two that could perhaps gift them money for savings (thereby avoiding the £100 interest tax trap)? Obviously if you decided to show said grandparent similar largesse in return, then that's entirely up to you 

That's what people were saying 18 years ago when we started a pension for daughter. Not much has changed but I'd say it's even more valuable for her now. 

If it works for you then great, personally I can find better ways to help my children than locking up money in an account that the government can raid far more easily than they can access for the next half century.

When she turned 18 she got 10 times her pension value from the JISA which is a lot so all good. Cheers