Pension for Child?
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Looks like most people haven't set one up then.
If I did, it would be along side other savings such as a JISA so they had something to help towards more relevant things at circa 18.0 -
trailingspouse wrote: »
One of my husband's relatives scrimped and saved to put money into a savings account for him. When it matured he got £800. He earns that in a day now.
I definitely will try and open a pension for my daughter before she starts working - if anything for instilling the ethos of pension savings and to pass the baton to her once she starts working. Have not done it till now because money is limited - mortgage , my pension, savings for her out of pensiin and expenses for her extracurricular activities etc are indeed priorities. Although when I think k about mortgage and see how inflation affected the value of my payments in just 7 years I indeed start to question the wisdom of early repayments...The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Who knows , may be the chap earns that precisely because he seen his patent doing what they done
I definitely will try and open a pension for my daughter before she starts working - if anything for instilling the ethos of pension savings and to pass the baton to her once she starts working. Have not done it till now because money is limited - mortgage , my pension, savings for her out of pensiin and expenses for her extracurricular activities etc are indeed priorities. Although when I think k about mortgage and see how inflation affected the value of my payments in just 7 years I indeed start to question the wisdom of early repayments...
Yep that's one of the reasons that scrambling to pay a mortgage off early is generally a poor idea along with the opportunity loss of the moneynthat could be put toward a pension plus often the loss of high rate tax relief .0 -
Although when I think k about mortgage and see how inflation affected the value of my payments in just 7 years I indeed start to question the wisdom of early repayments...
Yes over the long term once you have reached a low enough LTV to access the best interest rates and if your repayments are clearly affordable (even if rates go up) then further overpayments become suboptimal. Our ISAs will soon overtake our remaining mortgage balance and although they carry volatility risk they are more likely to beat interest payable over the next circa 20 years before early retirement. We could have cleared the mortgage a couple of years ago if we hadn't made such heavy pension contributions. I'm planning to fix the mortgage again this month for another 5 years of low rates.
Alex0 -
I would say JISA would be much better because as many others have pointed out, a young person needs a lot of help with house deposit etc rather than their pension.
If you think about, in a way if you help your child with their costs earlier in life (first house deposit, university fees etc.) it will be putting them in a better position for things like a pension that they will need to think about later in life. However this relationship doesn’t really work if they have a decent pension, since they can’t touch that till later in life it won’t help them at all with other important life events they’ll come across before benefiting from a pension."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2021 - #027 £15,268 (76%)0 -
I'd like to for my two year old - a few other priorities to sort out first, but I'm hoping to put a small amount away each month within the next couple of years or so. Yes I want to help her in other ways, but if there's something to offset her inevitable "If only I'd put money in my pension in my twenties" in 30 years time, then that could only be a good thing. The simple power of that long term compound interest - it'll do her far more good than many other things I could do with my money.
At the same time it does feel a bit of a luxury. It's something I'll only be doing when I feel relatively comfortable, and the first thing to go if things get tight.0 -
I thought the thread title was the O.P. offering up their child in exchange for a decent pension.0
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I pay in £20 each for my two children hoping they continue payments when they start working0
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I doubt having a child pension will make any difference to if they opt out of their workplace scheme (which is usually the best way to make contributions). It might even cause them to opt out thinking they already have some money put aside..0
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I can't imagine a situation where I'm ever likely to even consider a child's pension. Possibly if we had offspring that were likely to remain dependent on us for their whole lives due to disability or learning difficulties, but even then there's probably more useful ways of providing for them.0
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