Child pensions

[lorenzo458]

Does anyone have any advice on child pensions and providers? I would like to start one for my son to exploit the benefits of compound interest over time & government top up.

A handful of providers offer a 'child pension' product with no service fees, however my thoughts at the minute are what happens when they turn 18, does the 'child pension' convert itself into an alternative product such as a standard SIPP whereby service fees are then incurred from age 18 -> retirement?

[Darlo74]

I use Fidelity. They don't charge a Service Fee and I haven't put much thought to what happens when they get to 18. I suppose at that point you can always transfer to a different provider if fees are much better elsewhere.

Details on Fidelity charges via this link https://www.fidelity.co.uk/junior-sipp/#tab-link

[Rufus Stone]

Seriously, why would you want to put money into something that they probably won't be able to access until they are 60?

[markiii]

because they have 60 years of compounding to take advantage of and the government gives you tax relief

[Panamax]

Kid's pension set up 20 years ago (2001-2003) with net contributions totalling £10,000

Value today = £95,000

and it's got another 20+ years of tax free grossing-up to come.


Any further questions?