Article preview: Children are growing up fast. For parents, there are many ways to encourage them to take control of their finances from a young age into adulthood. With millions of younger workers now having a pension for the first time perhaps making very modest contributions, an option many parents are unaware of is that they can also contribute to their children’s pension pot too. A campaign launched by mutual insurer Royal London highlights the ‘hidden advantages’ of making such pension contributions on behalf of children. The pension contribution by the parent is treated as if the recipient had made it. For example, if a parent pays £800 into their child’s pension, the recipient will get basic rate tax relief on the contribution, increasing the amount in the pension pot up to £1,000.
Is it worth paying into a pension for your child?
This 485-word blog post considers the advantages of making a pension contribution on behalf of your children. Written on 6th June 2019.
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