Are pensions for children the new Child Trust Fund alternative?
With the end of the Child Trust Fund in January 2011 drawing ever near, there has been a barrage of new ideas and products that have recently come out on the children’s savings market. One of these is the self-invested personal pension, or SIPP. The plan allows you to control where the investment goes, and though not a new concept it is only now that an increasing number of providers are offering them aimed at children. Even though making regular payments into a pension plan for a child may seem obscure, the flexible nature of SIPPs along with the tax relief make them a straight-forward way of securing a comfortable future for your children. For every £80 that is deposited, the Government raises it to £100. The money then grows in one of the most tax efficient ways to save for the future and is independent of your own pension plans, which are unaffected. Steve Weisner, independent financial adviser at Radcliffe and Newlands, said, “Due to the long term nature of investing in a pension
