[Feature Request 🔧 ] Junior SIPP (JSIPP)

Ideas 💡
1

Junior Self-Invested Personal Pension (SIPP) is a tax-efficient account to help you save for a child’s future

  • your pension provider claims tax relief from the government at the basic 20% rate and adds it to your pension pot (‘relief at source’)

  • The maximum that can be paid in is usually up to £2,880 each tax year, with the government adding up to £720 (20%) on top.

  • Making payments to a Junior SIPP could help to reduce inheritance tax bills.

  • Like most child pensions, money in a Junior SIPP is free from UK income and capital gains tax.

2

+1 for this.

I love the idea of it being locked away for six decades or more – imagine the compounding. :exploding_head:

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3

The account will have to survive the tax fiddling of 12 successive governments lol

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4

Kid will never see it

5

Why would you say that? The government might change the rules in the future, but they wouldn’t take your money.

6

I’ve been to the future, everyone’s SIPPs are appropriated to fund the state pension in the Pension Solidarity Act of 2042

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7

Lol @fryry

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8

My sipp is going up to 57 already planned to go up to 59 by 2030. Dont get the point another 20 years sure it will go up beyond 65

9

People tend to be overly pessimistic in the long run and overly optimistic in the short term.
People are living longer, so they need to adjust accordingly. But there will be a limit, we won’t keep living longer and longer…or maybe we will, and that’s good :blush:

10

Let’s be honest. Freetrade is never going to ship this. They are hard of hearing, too slow, too useless at shipping anything and it’d probably the 20th thing on their list to make if they had a list.

My 2 year old son has a sipp from a broker that actually offer it. I had a lot of backlash and confusion from family (grandparents, missus etc) about locking away his money for 60 years.

Nearly everyone thinks it’s a dumb idea, but if you have a long term outlook, an understanding of compounding and the benefits of not being able to pilfer savings throughout the ups and downs of a lifetime, then a sipp is clearly a brilliant product.

I made a rule for his sipp to satisfy all the haters in the family who said it shouldn’t be done. The rule is that the sipp value should be roughly equal to his age plus 10% of the total value of his savings. So where he is 2, it’s 12% of total savings. When he’s 40 it will be 50% of his total savings if he sticks to that rule.

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11

I think it’s a great idea, and like you said, if you understand compounding, and the fact that it’s a tax efficient account, you are setting your children for financial success, even if only for their retirement.

Remember that some people attribute Warren’s Buffet wealth not to the fact of their successful investments, but to the length of them. He only became millionaire in his 50s.

Thank you for sharing your thoughts and the discussions with your family. I think your rule is quite good, and everyone will thank you later.

Now regarding Freetrade delivering this feature, I agree with you that is not on the top of their priorities and it will take time to deliver. However, is still worth making the request topic, and vote for it. The more votes, more visibility and more likely to jump the feature queue.

12

Great idea and we plan to open one for our daughter soon - I’d like it to be with FT.

There is already a thread for this suggestion below but I’m not sure how or if I can merge them.

Edit: scrub that - the JISA thread came up in the search for JSIPP!

13

While easily confused, Junior Isas and Sipps are separate products.

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14

Hehe - yes, I was there - I searched JSIPP as there has been much discussion on here about them and thought that there was a suggestion for them - but it came up with JISA thread. My bad!

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15

I can see their point - the certainty of government policy changes over that time period negatively impacting the scheme is what put me off.

Plus if the limit stays at £3.6k as it has for many years rising inflation further negates the benefits.