Opening pension funds for 8 / 10 year olds

rawhammered wrote: »

Wanting to open a pension fund for my children, paying in about £100 each a month and would like to invest in something low maintenance and cheap such as Vanguard Lifestyling 100% equity or equivalent. Any recommendations for platform to facilitate this at a low cost?

I assume you have exhausted or have sufficient financial strength to undertake nearer term planning, i.e. JISA, LISA (when 18), etc, etc.

I've never understood why people do this - unless they don't trust themselves not to spend it otherwise. It's so inflexible to lock the money away for 60 years and it may be horribly inefficient if it takes up pension space against whatever the future equivalent of LTA is and prevents them from making their own contributions with a higher rate of relief in the future - be that HRT or some future flat rate. Assuming they are going to put away enough themselves in the future to cover their PAs they only get a 6.25% tax benefit on current rules (20% in vs 15% coming out) and that assumes that the TFLS still exists in 50 or 60 years time.

Your wife doesn't have any LTA issues, so in your place I'd be sticking this into a pension in her name to benefit from tax relief, then take it out and recycle it into LISAs for the kids from 18. These give 25% tax benefit and way more flexibility as they can be used towards their first house rather than just in retirement.