Can I set up a pension for my children/grandchildren?

I realise that I’ve been very fortunate with my retirement income, but my son’s new little one won’t have it so easy when she comes to retire. Is there a way I can start a pension for my new granddaughter and any other grandchildren I might have with my surplus income to ensure they all get a chance at a comfortable retirement as well?

Question asked by Mrs A Richards
Are You Pension Happy?
Call us on 02084327333
I know how much my pension is worth
I know how much my pension costs
I have clear financial goals for my retirement

Answered by Michael Englefield

Can you make pension investments for children and grandchildren?

Yes, you can set up a pension for your children or grandchildren on their behalf.

grandparents-investing-in-pension-for-grandchildren

Non-taxpayers, including children, can hold money in a personal pension scheme and benefit from basic rate tax relief at 20% on the first £2,880 a year put into the pension. For every £2,880 that is paid in, the government will top up this amount to £3,600.  This won’t have any impact on your tax bill.

One of the advantages of setting up a pension for a child is that any money paid in while they are young will benefit from decades of investment growth.

The downside, however, is that your children or grandchildren won’t be able to access any money held in a pension for them until at least the age of 55. That means if they need funds to cover higher education costs or to get onto the property ladder, they won’t be able to use money saved in a pension.

Pension
 
Pensions and tax
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

 
I have a pension but I’m not really sure what it is, please can...
 
I know I had a pension with my first employer, but I don’t know who it was with or where any of...
 
My pension says it has a guaranteed annuity rate, what does this mean and is there anything I should...
 
I bought my annuity before the start of the pension freedoms and now they’ve been introduced I...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Edward Brampton
13/01/2018

They were patient, thorough and good value for money. I regret not using them before and I will use them again in the future.

Fiona Katumwa
11/01/2018

Very excellent service and informative. All options were offered and I had to make my own decision at the end. Would recommend.

Graham Mccollum
14/01/2018

Very efficient and well instructed service with polite staff, I felt Drewberry really did do their utmost to find the best deal for me personally.

We are rated 4.9/5 based on 1320 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1478 Reviews
K
Overall Rating
Ciaran was Brilliant and provided a thorough service that delivered exactly what I was looking for. Very paitent and made even the most complex terminology sound simple.
A
Overall Rating
very pleasant to deal with , good customer service
T Nuttall, Apollo Home Heathcare
Overall Rating
I have been most impressed with the service I have consistently received from Drewberry Insurance. I chanced upon them via an Internet search and they have been extremely responsive and efficient from the start of the process in providing quotes and advice, to setting up the insurance and responding to any ongoing queries. I have mainly dealt with Nadeem Farid who has been most helpful and efficient and provided an excellent service. Nadeem obtained quotes at short notice and at an annual premium far below what we had managed to obtain ourselves. Nadeem was always contactable whether via telephone or email and always got back to me as promised. Nadeem also turned our application around in a very short time-scale. I have equally found Francis Webster to be very efficient in the ongoing management of the insurance policy, always dealing promptly with any queries we have raised. It has been a pleasure to deal with both Nadeem and Francis and I wouldn't hesitate in recommending Drewberry Insurance.
A
Overall Rating
Professional service, convenient.
R
Overall Rating
Taken the time to find the right insurance for me.