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Saving for children

Saving for a child is a great kick start for their future. Not only can they start their adult lives with some savings in hand, but getting them involved with saving early in their life also helps them learn important lessons about money.

Child Saving Piggy Bank


Personal Pension

Personal Pension

A Personal Pension is a tax-efficient way to start building a pension pot for a spouse or child who have no relevant UK earnings. This is generally considered a long-term savings product as funds cannot be withdrawn until aged 55 (under current regulations).

The selected funds will affect the risk level of the SIPP. Assuming no relevant UK earnings, children will receive basic tax-relief on contributions up to £2,880 each year on a SIPP, meaning the gross annual contribution can total £3,600. You won’t pay any CGT on a SIPP.

Under current regulations, 25% of the total value of the SIPP will be tax-free, with the remaining 75% taxed at the individual’s marginal tax rate at the time of the withdrawal.



Junior ISA

Junior ISA

A Junior ISA (JISA) is a long-term, tax-free savings account for children who are UK resident and under the age of 18. The child can normally take control of the account from age 16 but will not be able to withdraw until age 18.

Junior ISAs are a medium-long-term savings product. Money cannot be withdrawn until the child turns 18. You can hold cash or stocks and shares in a Junior ISA, or have a combination of both, ultimately affecting the risk level. You can contribute £9,000 each year into a JISA.

JISAs are a tax-free savings product, meaning you will not pay any income or capital gains tax on savings.You will not get any tax-relief on any contributions made into a JISA. ISAs are a tax-free savings product meaning you will not be taxed on any withdrawals.



I have previously set up a Child Trust fund for my child

I have previously set up a Child Trust fund for my child

If a child was born between 2002 and 2011, they might have a Child Trust Fund (CTF)

Since April 2015, parents have been able to transfer savings from Child Trust Fund accounts to Junior ISAs.

If the CTF is not transferred, when a child reaches 18 they’ll still be able to access the money.