Saving enough for retirement can take a lifetime. But you can give your little ones a big head start by opening a Junior SIPP. Not only are your contributions topped up by government tax relief, but the investments you make have decades to grow. By the time your child retires, even a modest pot could be a massive one.
Advantages of an AJ Bell Youinvest Junior SIPP
It may seem a little premature to start putting money into a SIPP for your child or grandchild at birth, but the tax relief that is available on the contributions makes this a particularly attractive – if long term – way to save for your child’s future. The money is tied up until they reach retirement age, which is set to increase from the current age of 55, so this money will not be accessed any time soon.
You can open a Junior SIPP online easily and choose from a wide range of investment options. If you are looking to save monthly, our regular investment service allows you to invest from £25 a month at just £1.50 a deal.
Anyone can put money into a Junior SIPP as long as it is within the £3,600 annual contribution limit, which includes tax relief. In short, you can put up to £2,880 a year into the Junior SIPP, and the Government will add tax relief at 20% to make this up to £3,600.
Additionally, if you have a SIPP account with us you can link your child's SIPP to your account, making each easier to manage.