Select SIPP for Children
Taking control of your own pension arrangements has never had a greater focus than now. Thanks to tax-relief and compounding, an annual contribution of £3,600 gross made to a Select SIPP for your child/grandchild could be worth almost £2m by the time your child reaches age 65.
This is because even someone with no income like your child can get basic rate tax relief on contributions of up to £3,600 gross a year to a pension. The government will contribute £720 of this. You only need to pay £2,880 (£240 per month).
Assume you contribute for 18 years, and the investment grows at 6% per annum, then by age 65, your child's pension fund would be worth £1.8m. And that's before they make any contributions themselves.
Please be aware that the level of growth forecast is not a reliable indicator of future performance. It does not take account of the effect of future inflation and any dealing charges within the Plan.
The pension products and services referred to on this page are provided by Alliance Trust Savings Limited, authorised and regulated by the Financial Services Authority.
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Before you complete your Select SIPP application for children, we strongly recommend you read and understand the Select Pension: - Key Features, Handbook, Contractual Terms and Charges.