Why Start a Junior Pension for Your Child?
One of the best pieces of pension advice is that it’s never too early to start. In that spirit, we’re here to offer advice and guidance on setting up pensions for young people. Starting a junior pension is one of the most proactive steps you can take for your child’s security – particularly in such financially uncertain times. With junior pensions, you’re not just saving money; you’re investing in your child’s future. Starting a junior pension ensures significant long-term growth on your investment and can help bring peace of mind to parents and guardians that their children will have some financial security in the future. Contact KGJ today and discover how to set up a junior pension that will grow alongside your child.
Key Benefits of Junior Pensions
Aside from being incredibly tax-efficient, the biggest benefit of a pension for kids is that time is completely on your child’s side, meaning that compound interest will grow the pot substantially over a much longer period of time. The earlier you start the pension, the greater the potential for serious long-terms gains for your child.
Long Term Growth
Financial independence is an aspiration for most of us, and investing in a kids pension is a smart way to secure this for your child. Thanks to compound interest – where interest earned is counted towards the next interest payment and so on - even small contributions can grow into significant amounts over decades.
Tax Efficiency
Junior pensions are tax efficient. You can contribute up to £2,880 a year tax-free, and the government will top that up with another 20% to £3,600, thanks to tax relief. By the time your child can access their pension (currently 55 but due to rise to 57) they will have potentially accumulated a considerable amount.
Flexible Solutions
KGJ understands that every family's needs are unique. That’s why we offer advice on a range of pensions for young people, including flexible contributions and choices in investment strategy. Whether you wish to adjust your contributions or change how aggressively you invest, junior pensions can be tailored to fit your goals.
Set-Up a Junior Pension Today
Are you ready to give your child the best chance at a financially secure retirement? Get in touch with KGJ to get started. Call us on 01384 390909 or email enquiries@tpitdev1.uk to talk to one of our experienced financial advisors – with over 50 years of experience, you’re in very safe hands.
FAQs
Who can legally open a junior pension?
Any legal parent or guardian can open a pension for a young person. There’s no minimum age so as long as your child is under 18 you can open a junior pension – though as we’ve said, the earlier the better. Once it’s open, anybody can contribute to it.