SIPP (for children)

SIPP (for children)

Author
Discussion

thewave

Original Poster:

14,715 posts

210 months

Monday 12th November 2007
quotequote all
Anyone opened one for theirs, if so any ideas? I have mine with H-L and am fairly active trading within it, but I would just like a single fund perhaps to start them off.

Thoughts and alternatives appreciated

PS

I was thinking pension, because it's something many kids skip out on, and I'd like it to be there ready for them if needed.

ginettag27

6,307 posts

270 months

Monday 12th November 2007
quotequote all
I can just see Gordo rubbing his hands in glee!!! wink

Apols. I'm sure it is a great thing to do, until a future Chancellor spies it all sitting there..

I'm more taken with the DRIPS, but not sure if you can open them for a child...

DavidY

4,459 posts

285 months

Monday 12th November 2007
quotequote all
What is the point in locking money in a pension for children??

They can't claim any tax relief on the payments in as they are not taxpayers and they don't pay tax on any investment earnings anyway, surely much better to have some kind of long term savings plan(s) or vehicles that they can use later as a deposit on a house, because they are going to be really pleased in their 20's when they have a great untouchable pension and are living in some rented squalor!

davidy

Martin Hunt

301 posts

269 months

Tuesday 13th November 2007
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I haven't done a SIPPS but have done a Stakeholder pension with Virgin, Gordon puts in 38p for every £1 I put in or something like that.

I agree though you need to balance payments for kids, that's why I have several accounts for Uni, Travelling, House, Marriage etc, all with money in for those days.....

Eric Mc

122,165 posts

266 months

Tuesday 13th November 2007
quotequote all
Don't forget that the tax rebate into pension schemes is being reduced next year.

thewave

Original Poster:

14,715 posts

210 months

Tuesday 13th November 2007
quotequote all
DavidY said:
What is the point in locking money in a pension for children??

They can't claim any tax relief on the payments in as they are not taxpayers and they don't pay tax on any investment earnings anyway, surely much better to have some kind of long term savings plan(s) or vehicles that they can use later as a deposit on a house, because they are going to be really pleased in their 20's when they have a great untouchable pension and are living in some rented squalor!

davidy
Even for a child the contributions 'do' get grossed up, so, my thinking is that, why not put a small amount in, say £39 which then gets grossed up to £50, surely that's a much more effective way of saving for your children?

Other investements we have are designed for uni, weddings etc. A pension is easily the best way of investing. It's just not as accessible, which is exactly what I want in a way. I don't want them to have everything in cash to spend, I want to know I've provided for them in some part sensibly. They can blow the rest on fast cars and women/men for all I care, as long as I know some part of it's been safeguarded from being wasted.