Give Your Child Something Worthwhile For Their 18th Birthday

Setting up a pension plan for an infant isn't as crazy as it might once have seemed - today, more than ever, there is a necessity for individuals to plan for their future finances, starting from as early as birth. If the notion of opening a pension for your child sounds strange to you, it might be time to think again. There's an old saying amongst pension experts that is particularly relevant when discussing pension savings for children: "It's the first pound that makes the most money", with this in mind- the notion of starting your child's savings today may not seem so strange.

According to a recent study by HM Revenue & Customs, approximately 60,000 minors now have pension plans. How would you like to give your child a pension pot worth nearly 2 million GBP-For a small cost your child could be set up for life.

The Stakeholder Pension Plan for Children allows you to start a pension for your child or grand child immediately after birth, providing them and their future family with a fantastic financial security net when they approach retirement. It's natural for parents to worry about their child's future, a stakeholder pension plan allows you to save on behalf of your child up until the age of 18, after this time they can continue with the monthly contributions themselves. Given that the money has at least 55 years to grow, imagine the lump sum which may await the child when he or she retires!

Features include the ability to increase, decrease stop and re-start a stakeholder pension without penalty. It is a tax efficient way to provide for your child well into adulthood, and with no access to the money until the age of 55 at the earliest, it means that your hard earned savings will not be wasted once they turn 18!

If you start saving today for your child, paying 40 GBP a month, increasing by 5% a year and assuming annual growth rates of 10.2%, the projected pension fund would total a staggering 4,052,070 GBP at age 65!! Whilst these figures are based on the assumption that you will increase your monthly contributions year on year, this pension plan is extremely flexible and even with much lower and consistent monthly contributions, your child can benefit from a fantastic pension pot when they reach retirement!

With pensions currently in crisis for many, unprecedented levels of workers are facing the prospect of retiring with little or no pension savings. Make sure you protect your child's future... and start saving today!