We're saving £100 a month into pensions for our toddler and baby - here's why
Summary
A couple in Wales is saving money each month into pension accounts for their toddler and baby to help secure their financial future decades later. They also save in Junior ISA accounts, which children can access at 18, balancing short-term and long-term savings for their kids.Key Facts
- Richard and Caitlin Brain from Swansea put £50 a month into each child's pension.
- Children cannot access pension money until they are 57 years old.
- They also save £60 a month per child in Junior ISA accounts, accessible at age 18.
- The couple spends less on dining out and gifts to save more for their kids.
- Junior SIPPs (self-invested personal pensions) were introduced in the UK in 2001.
- Annual contributions up to £2,880 receive £720 in government tax relief, totaling £3,600.
- The number of Junior SIPP accounts has increased significantly in recent years.
- Some teenagers, like 15-year-old Hugo Thompson, are comfortable waiting decades to access pension funds.
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