Junior SIPP and/or Junior s/s ISA

Random47

Have 2 kids 13 & 16, considering opening SIPP and/or ISA for each. Will be low values in to start say £50p/m ea or £25 p/m ea if open both a SIPP and ISA, perhaps increase a bit after a year or so. Objective is just to get the savings / SIPP started and kids can take over once working etc. Mrs not so keen on SIPP as thinks world will end before 50 years up, my parents thought the same when I was a kid hence I did not start a pension till I was 40, so my thoughts are a yes on SIPP.

Whats the thoughts and opinions?

dunstonh

Mrs not so keen on SIPP as thinks world will end before 50 years up

If it does, then it won't matter anyway. If it doesn't, then the children will be better off because of your actions. So, with the greatest of respect to your wife, I think her point of view is irrelevant.

You should do it if you have surplus funds and can afford it.

Random47

Wont tell Mrs her viewpoint is irrelevant - I like my teeth too much however much I agree with your view…

Anyone have any opinions on platform. I've used Vanguard and Mrs has SIPP with them. I transferred mine to HL so I could small pot, and have AVC with Prudential. All seem fairly ok, but happy to hear others experience specifically to platforms and Junior SIPP/ISAs

Mistermeaner

I use hl for all my kids as it’s a one stop shop that does junior sipp and isa plus when 18 Lisa too. Their cash isa is good as well as it’s a isa market place and easy to move to higher paying accounts

I’ve 2 that have reached 18 now and for each of them I handed over a folder and login with a sipp, LISA, stocks isa and cash isa.

Any payments from relatives we’ve steered toward these accounts

it’s a great gift to give to an 18 year old in my view not just from a tax efficient money 💵 perspective but also because it opens the door for a really good discussion about the various savings accounts on offer and the pros and cons of each hopefully encouraging good future habits

LHW99

Any money in an ISA absolutely belongs to the kids when they get to 18 - useful for Uni / driving lessons, not so useful if they blow it all on partying.

SIPPs won't be accessible until 57 (or later), so no use to them earlier if they wanted eg a house deposit, also if they are likely to be high flyers, it takes up some of the space for their own future payments in.

Random47

https://forums.moneysavingexpert.com/discussion/comment/82161825#Comment_82161825

Yeah that's the balancing 'theirs at 18 and theirs but not accessible' until whatever retirement age exists in 40 years or so. I think I'll pop for both ISA and SIPP it covers the bases.

HL shout from Mistermeaner noted - Fidelity doing a zero annual fee but flexibility in HL seems better, plus I have SIPP there.

Cheers

silvercar

will they thank you at say 25 when they need as much as possible for a house deposit and it’s all tied up in a SIPP?

Nurse2047

my children are now 15&17 and I started their s&s isas and SIPPs about same age. Using Fidelity and very happy so far, invested in global fund. Paying in £25 pm also and like you started pension late so this will be a good start and compounding can do a bit of work also

NormalNorman

When daughter was born I opened a pension and been paying in for 19 years now. People thought I was stupid back then, perhaps not now. It's an asset growing in the background. I haven't gone the SIPP route, just a scheme from Aviva.

It's a fraction of what we saved for her in whatever was the best scheme during the last 18 years. I say 18 as the last product was JISA. Used everything from NS&I children's bonds, 10% regular savers, Child Trust Fund etc. We also paid in every penny of her Child Benefit. Yes we did hand over a huge amount on her 18th. Was I worried, no. Fortunately now she is an avid saver.

With IHT the way it is I'm glad I've been doing all this gifting.

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/82161949#Comment_82161949

We did the same - the savings but not a pension- and gave it to her at 18. We call it her 'opportunity money' - not to be frittered away but there to enable take up of opportunities that she might not have been able to do otherwise. She is careful with it but has travelled to Japan and done vet work experience in South Africa.

NormalNorman

I don't have any complaints with Aviva but looking at their web page they obviously have different products now. TBH the main thing is just to get started with a low cost sensibly invested scheme. I'm under no illusion daughters scheme is likely to be transferred into a workplace pension at some point in the future. The downside of that is it might make it more difficult for me to pay into as a third party?

Also, although a long way off it's not only the opinion of other adults you have to deal with it's that of their peers. Daughter has heard third party that a few in her wider circle see her as spoilt. I appreciate that many kids are not as lucky and with the ongoing cost of living pressures it says to me they are also aware of the need to plan and save.

You don't need me to tell you that if the kids have assets behind them it gives them options such as Uni, travel, experiences as well as the usual car, property etc.