Opening and paying into a SIPP for a child
With investment, your capital is at risk. Taxation depends on individual circumstances. Tax rules may change.
Saving into a SIPP or other pension for a child is an excellent way to give their financial future a boost. It might not be the most obvious choice when they’re likely to have other hefty financial challenges long before retirement – student loans, a home, possibly a car – but because of the length of time the money will be invested, even small amounts can grow quite substantially.
Even making small contributions into a child’s pension can make a huge difference to the amount of money they eventually have for their retirement. This is due to compounding – the snowballing effect of your returns generating more returns.
If you pay the maximum amount of £2,880 into a child’s pension from birth until they reach 18, and the investments achieve annual growth of 5%, the child will have a pension worth more than £700,000 by the time they reach 55* – an amount not to be sneezed at!
We have a multi award-winning pension – the Best SIPP – that is available to children. It:
Bestinvest was voted Best SIPP Provider 2018 at the Shares Awards and Best Low-cost SIPP Provider at the Financial Times and Investors Chronicle Investment and Wealth Management Awards 2018.
Download our Child SIPP application form to open an account or call us on 020 7189 9999 if you would like more information.
*This figure is based on an investment return of 5% per annum after fees, compounded annually. It is an example and is not guaranteed. What you will get back depends on how your investment grows and the tax treatment of the investment. Charges may vary. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. This does not constitute personal advice. Please also see the information below.
SIPPs are not suitable for everyone. They may not be right for you if you don’t want to invest across different asset classes or don’t think you will make use of the investment choices available to you. Please contact us for guidance or advice if you are unsure.