Do Kids Need a Pension?

Should you open a Children's Sipp to give your youngsters a head start on their retirement savings? We look at how they work and when to consider getting one 

Faith Glasgow 8 February, 2021 | 9:45AM
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Pensions

Why would anyone bother setting up a pension for a child? They won’t be able to access the money until they are approaching retirement, and in the meantime they face myriad other money worries from driving lessons, student debt, uncertain employment prospects and the challenge of getting a toe on the housing ladder.

Given that, it’s no wonder many people would prefer to put any money they invest for their children into a Junior Isa. The money in these accounts can be accessed from age 18, potentially smoothing a child’s entrance into adulthood, whereas a pension remains inaccessible for the next half century, by which time you likely won’t be around to see them enjoy the money.

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About Author

Faith Glasgow  Faith Glasgow is a freelance journalist specialising in pensions and investment trusts

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