Saving for your children’s future is a popular conversation whilst standing around at the almost weekly children’s parties. The latest being the classic bouncy castle.
Two popular options that often come up are the Junior ISA (JISA) and the Junior Self-Invested Personal Pension (JSIPP):
JISA – You can contribute up to £9,000 per annum. At 18, your child can access it and do what they want with it.
JSIPP – You can contribute up to £2,880 per annum, grossed up to £3,600 with tax relief. A child can’t access it until at least age 57 (from 2028) – and this will probably rise again before then.
Things to think about:
• How sensible were you at 18?
• How would you feel in your 20s and 30s, struggling to get on the property ladder knowing there is significant money locked away for another 30 odd years?
• Should you be using other allowances?
• Is it better to gift the money to your children from your ISA, LISA, pension or somewhere else?
With the significant costs children encounter after the age of 18—whether it's university, a property deposit, a wedding etc.—the best ways to save for your children has never been more important and is often a key part in a financial plan.
The best place to start is by knowing your goal and when your child is likely to need the money.
It’s something many parents ask about — what’s your approach?
Would you choose accessibility at 18 or a locked-in long-term option or something else?
How to help your children financially is a key part of financial planning.
I’d love to hear your thoughts.
Contact me to arrange the next steps
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This blog is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
The value of pensions/investments and any income from them can fall as well as rise. You may not get back the full amount invested.
Levels and bases of, and reliefs from, taxation are subject to change and their value will depend upon personal circumstances. Taxation and pension legislation may change in the future.
