Quick Links

Children's Stakeholder Pensions

Quotes & Advice on Pensions for Children…

Under current pension legislation parents or grandparents can save up to £3,600 pa into a stakeholder pension scheme on behalf of their children or grandchildren. The advantages and disadvantages of such an arrangement are:

Advantages:

Contributions attract tax relief e.g. based on an investment of £1,000 into a stakeholder pension for a child assuming a basic rate of 22% the actual sum invested would be £1,282
A parent or guardian or grandparent can set up a stakeholder pension and pay the contributions for any number of children under 18.
The plan can be transferred from one pension stakeholder provider to another without incurring penalties.
The money is invested for the long term and cannot be accessed until the child reaches 55. This is a long term investment with good prospects of growth.
Many stakeholder pension providers have a range of funds that can be invested in depending on requirements.

Disadvantages:

Money from the pension fund is only available from age 55 (This could be an advantage!)
There are rules on how pension benefits are taken e.g. Only 25% of the fund can be taken as tax free cash.

If you are interested in examining Stakeholder Pension options for children or grandchildren, then it is advisable to discuss it with a professional pension adviser.

Our Pension Service* provides:-

Impartial quotes & advice on children's pension plans.
Advice on suitable investment funds.
Assessment of UK pension providers who provide child pension schemes.
Helping you with the relevant paperwork to ensure that the pension is implemented smoothly.