Junior SIPP

[Downward]

Hi my kids have a jisa but I'm thinking of something more long term.
I have seen these pensions you can start which they can't have until 58 so plenty of time to invest
They all seem though to want some big to me monthly payments.
I was looking at £10 to £20 a month to invest for each over a minimum of 50 years or more realistically 40 given my age now.

Any advice?

[benjeffrey]

For the volume of money you're talking about, is a SIPP the best idea? By the time they're 55, will they have wished that they had it sooner, towards a house deposit etc. Personally, I would look at putting the money towards a mid-risk (research which yourself) Fund & Share account, I use Hargreaves Lansdown.

Once they turn 18, they can open a Lifetime ISA, you can move some of the money into that and then split between the two. Granted the Lifetime ISA will restrict it to purely a house deposit, so keeping some in the Fund & Share will give you the options.

Hope it helps, still only learning all this myself.

[oldaudi]

Ive got a Junior SIPP each for my daughters. With Hargreaves Lansdown, you can pay as little as £25 a month and they add the 20% "tax refund/basic tax relief" automatically.

I like them because I can manage it alongside my accounts and change investments amounts or types of investments easily so I up it and down it depending on my outgoings each month.

I know there are pros and cons of doing this but I believe that Government pensions are on borrowed time and anything I can do to help my children now I think will be worthwhile. When they start employment I think their outgoings on other bills will be so great that a pension will go to the bottom of the list.

I also invest into a Stocks and Shares Fund "In trust" for them, 10 year Bond, CTF etc and I want to use that towards housing and education

Edited by oldaudi on Friday 12th May 09:07

[Cheib]

I've got SIPP's for my two kids...have also started doing ISA's for them. Better to do both than either/or I think.

I disagree that the benefits of a SIPP won't be felt by you children until they retire. As above state pensions will be all but non-existent in 20 or 30 years so the pressure will be much more accute to start pension saving earlier when my kids get to working age in 15 to 20 years. Whilst their peers will be saving to buy houses as well as saving for their retirement hopefully mine won't have to start saving for their retir,met quite so early.

[Downward]

Cheib said:

I've got SIPP's for my two kids...have also started doing ISA's for them. Better to do both than either/or I think.

I disagree that the benefits of a SIPP won't be felt by you children until they retire. As above state pensions will be all but non-existent in 20 or 30 years so the pressure will be much more accute to start pension saving earlier when my kids get to working age in 15 to 20 years. Whilst their peers will be saving to buy houses as well as saving for their retirement hopefully mine won't have to start saving for their retir,met quite so early.

I'm thinking maybe another option is to pay more into my additional pension scheme then take the lump sum and just open up a pension for them then. This is maybe 22 years away so there should be decent money in there.

I'll have to some some calculations. Benefits of this is if they get good jobs I'll just keep the money !

[Cheib]

Downward said:

Cheib said:

I've got SIPP's for my two kids...have also started doing ISA's for them. Better to do both than either/or I think.

I disagree that the benefits of a SIPP won't be felt by you children until they retire. As above state pensions will be all but non-existent in 20 or 30 years so the pressure will be much more accute to start pension saving earlier when my kids get to working age in 15 to 20 years. Whilst their peers will be saving to buy houses as well as saving for their retirement hopefully mine won't have to start saving for their retir,met quite so early.

I'm thinking maybe another option is to pay more into my additional pension scheme then take the lump sum and just open up a pension for them then. This is maybe 22 years away so there should be decent money in there.

I'll have to some some calculations. Benefits of this is if they get good jobs I'll just keep the money !

I can't do that as I am capped on my pension...I also take the opinion that you just never know what's coming with legislation. It's caught me out a couple of times i.e. changes to pension legisltaion....knowing what I know now I would have maxed it out when I was younger!