A SIPP for children???

Question

Hi there, just got a quick question I'm trying to research. If anyone has an answer I'd greatly appreciate any help.

I'm looking to set up a pension for the newborn. I know I can open a stakeholder, but all the funds look, well, pony! Ideally, I'd like to invest in the same funds that I invest in myself - several specialised overseas funds.

Is there any way I can do this, either through a SIPP or through a stakeholder that allows me to choose appropriate funds? Or am I stuck with UK and European trackers :-)

Thanks for any help,

Tombo.

sylvian stone · Accepted Answer

You can use an ordinary Personal Pension, or any type of personal pension you like. Most non-stakeholder pensions (say, Standard Life as an example) offer lots of good quality third-party fund links. The fund charges are more expensive, but then you get more than just a range of vanilla funds.

Don't assume you have to use a stakeholder - the only limiting factor is that as a child does not have an income, gross contributions will be limited to £3,600 p.a.

Therefore, you could in theory use a SIPP - but as most SIPPs make an annual admin charge (often several hundred pounds), so that may make it uneconomical.

If you want to invest in specialist investment trusts, a low cost SIPP using an execution-only stockbroker could fit your needs. Look at the Alliance Trusts SIPP.

A SIPP for children???

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