Pension News Pension Saving For Children Is A 'great Idea' 18439302

Pension saving for children is a ‘great idea’

24 January 2008 / by None
Savings that are put into a Child Trust Fund (CTF) can be strengthened by using further savings plans such as a pension, according to a leading financial advice firm.

A CTF is a long term investment plan and can be saved into by parents, family or friends at a maximum input rate of £1,200 per year.

The government also provides a £250 pound voucher toward the fund to all those children born on or after September 1st 2002.

However, solely relying on this fund can be a risky strategy for parents, as there is a danger that the child may rapidly spend the savings after gaining access to the money when aged 18.

Commenting on the benefit of setting up a pension for your child alongside a CTF, Anna Bowes, investments manager for AWD Chase de Vere, said: “I think a pension is a great idea. When they get to that retirement age and they’ve potentially got a very large sum of money in their pension, and that’s going to give them a good, safe income.”

AWD Chase de Vere is one of the UK’s largest Independent Financial Advisers with over 400 professional advisers.

Find out more about pensions

Pension News Pension Saving For Children Is A 'great Idea' 18439302 Fair Investment© Adfero Ltd






Written by Editorial Team