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.

*Our pension service will put you in touch with a network of specialist independant financial advisers who can offer professional pension advice
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