Pension Planning for student ??

[anonymous-user]

My daughter is a uni student. As long term savings will (I hope) accumulate in to a good sum one day what is the best savings plan/method/whatever to give her the biggest sum in say 40 years time?

I am really quite clueless on the subject so happy to be pointed at a product(s) rather than expecting me to understand complicated lingo.

Many thanks for your advice.

[Condi]

Eh? As a student let her enjoy herself, piss her student loan up the wall, and get herself into a lot of very fun debt same as everyone else.

Once shes working then highest matched contributions into a mixed fund is about as complicated and profitable as it gets for the first few years. Where is there a good few K's in there you might think about doing something else, but before then there isnt really much point unless you are a seasoned investor. If you are a basic rate taxpayer then look at a LISA - Lifetime ISA - can either be used for a house or for retirement and the government chucks in some free cash too.

[Somebody]

MikeStroud said:

My daughter is a uni student. As long term savings will (I hope) accumulate in to a good sum one day what is the best savings plan/method/whatever to give her the biggest sum in say 40 years time?

I am really quite clueless on the subject so happy to be pointed at a product(s) rather than expecting me to understand complicated lingo.

Many thanks for your advice.

I'm assuming you would like to give her some money to invest now to give her a start? If so, I think there are 2 route you can go down:

(1) give her a maximum of £2,880 to put into a personal pension plan in a given tax year with the like of Standard Life/L&G etc, and let it grow. £3,600 ends up in the pot with tax relief (the provider will do this automatically);
(2) Help to Buy ISA - a decent option if she's a first-time buyer saving for a mortgage deposit. Can earn interest tax-free and the state will add 25% free cash, and it could be £1,000s on top of what she saves. The most she'll get the bonus on is £12,000 (so a £3,000 bonus). If more than that can still use the ISA to save, just won't get more than £3,000 on top

Something to watch out for though: She won't be able to touch the pension pot until she's 55 (current rules), whereas with ISAs she could fritter it away without you knowing as it's in her name!

Good luck

[anonymous-user]

Many thanks both. Yes essentially I thought it is better to start sooner rather than later so she can retire earlier. And if I can contribute now too then all the better. Thanks a lot.