Child pension option

Bearing in mind this site is all about securing our futures and those around us I have one request that is surely most of our biggest ideals. Looking at how compound interest works etc it would surely be a great idea to allow a very basic child pension option.
If we had an option that could lock away a small nest egg for the young-uns then when they are 18 they can see they growth potential and be encouraged to grow it more. This will only ensure they have a guaranteed good life in the later years and also a safe bet for FT as the money is locked for a long time.
Preferably on a 1% annual charge or something rather than monthly charge but either way is good.
To me this is a much preferred option to a large savings that can be blown on something stupid, I know I did, when young and again a great motivation for them to continue thinking long term. I just wish I had these options when I was a kid as I would have saved lots more than I did and be looking forward to a fantastic retirement and a lot earlier than required.
2 good links below but I can’t underestimate how good this would be as an option on Freetrade :+1:

Yes this would be great.

We are due our first next month and apart from a JISA we will be opening a Junior SIPP with AJ Bell. Not my preferred provider but costs are very low if you are not investing in many things / churning the portfolio and accumulating dealing costs.

With all on Freetrade’s plate I can’t see them doing it any time soon.

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:point_up_2::point_up_2::point_up_2::point_up_2: @CashCow

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Defo not me mate…

I’m a changed cow. I might be getting “I Love AJ Bell” tattooed on my forehead.

As of March 2021, AJ Bell is a much better provider for LISAs and JISAs than Freetrade. Far far better. Such good value. Exceptional customer service. Faultless systems. Every transaction is a joy.

I can’t get wait to get inked up and celebrate my beautiful love affair with them.


It’s not difficult to be a better LISA/JISA provider than :freetrade: as they do not offer them yet :roll_eyes:

A JISA they can access when they’re 18 - sure. An investment they can’t access for 60 years? Not quite so keen on that I must admit.

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Agreed… it’s a very long outlook. It also feels a bit weird to be thinking about a child’s retirement when there are more immediate financial milestones to reach.

However, I guarantee you nearly all the families with generational wealth and tax advisers, (ie. Old money and smart money) are maxing out their junior SIPPs to make their next in line wealthy by default. They have generational wealth for a reason and they know what they are doing. So even though I don’t have generational wealth, I’m going to copy them as much as possible.

The compounding of returns and tax back is off the charts over 50 or 60 years…
£1 a day from birth works out over £100k if you can invest it well… Calculator below.:

Whereas the £50 a month I plan to put in his JISA should see a lump sum of about £20k when he turns 18. It’s a nice gesture but it won’t buy much in 2039.

We also need to remember that most 18 year olds think they are geniuses but are actually as thick as two short planks. When I turned 18 I got £2k from my grandparents which they had saved for me over my childhood. When they started in the 80s a sum of £2k would have been a decent house deposit, but by the time I got it it was worth around 20-40 nights out to me. Derp.

So while I will do everything I can to teach him the value of money and how to invest before he has control of it, I fully expect him to buy the latest self flying hoverboard or all the shitcoins or whatever the equivalent of that is in 18 years, and blow any JISA savings before he is 30.

But then he will be able to use his income and growing investment knowledge to keep building the SIPP and make other investments.

TLDR I believe a junior SIPP is a good back up plan or extra layer of financial preparation, rather than a sole destination for child’s savings.


Some good points there but for me following the investing strategy of the wealthy ( where the focus is on tax avoidance ) may not be the best route for the more ‘financially challenged’.

For those without generational wealth two of the best routes to get there would be:

Education, followed by a well paying job over many years

Property ownership

with both the above potentially needing significant funding at the crucial 20-30 age range.

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If you can overcome the clickbait title, this Youtube video is a really comprehensive look into the 3 main options for your kids savings.

Investing For Children: How To Make Your Child A MILLIONAIRE - YouTube

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Yeah the headline grabber is off-putting to me but it is kinda true :+1: The reason I asked for this is it can easily compound into very high amounts from an early age. My plan is to easily get them in a position of having a £million pot by 50-60.
I have a spreadsheet that shows them future potential and hope that encourages them to add to so they can retire at first opportunity :+1:
I wish I had this option and not a lump sum at 18 years old that got wasted.

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