We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Children's pensions
Options

Catherine2017
Posts: 1 Newbie
We are thinking of setting up a children's pension for our child. Can you share your insights on the following:
- Is it a good idea to pay into a children's pension?
- Which one is better: children's stakeholder pension or SIPP?
- Which provider is most cost efficient, in terms of setting up fees and annual fees, etc.?
- Are pension savings safe - if a pension provider closes down for whatever reason, what happens to the pension savings?
Any help is much appreciated.
- Is it a good idea to pay into a children's pension?
- Which one is better: children's stakeholder pension or SIPP?
- Which provider is most cost efficient, in terms of setting up fees and annual fees, etc.?
- Are pension savings safe - if a pension provider closes down for whatever reason, what happens to the pension savings?
Any help is much appreciated.
0
Comments
-
It might be a good idea if tax rules don't change much in the next 60 years. If contributing to a SIPP you get a government top-up but it is likely that your child will pay income tax when drawing income in retirement (the state pension uses up most of a pensioners 0% income tax allowance). The 25% tax free lump sum brings this down a bit.
Defined contribution stock market pensions are protected by FSCS up to £50k (not much these days) however there is no protection if the investment s don't perform and you suffer capital losses.
Personally I am using an Orbis Junior ISA and my own Nutmeg Lifetime ISA to invest for my son so cannot comment on Junior SIPP best buys but Fidelity look safe and simple (eg the low cost tracker) or AJ Bell for DIY investing.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.6K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.6K Work, Benefits & Business
- 598.4K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards