Client case study: Mr Meekin, Derbyshire
Mark Meekin (54), is a married father-of-two from Derby. A few years ago he set up pensions for his sons Daniel (15) and Matthew (17).
I believe it will get harder to save for a pension in the future. Everything is getting more expensive – for instance property prices – so as adults they’ll have less disposable cash to put away. I believe it’s more important than ever to start early where pensions are concerned. It also means I can continue to contribute over the long-term. That’s important to me as a parent – it’s about trying to look after my sons.
We chose a Junior SIPP for a couple of reasons. The first is simple maths. The earlier you start, the more impact it has on the pension pot – it has longer to grow, especially when you take into account the impact of compound interest. As you can’t access the interest or income in a pension, it simply adds to the value of the fund, so for my sons that’s currently over 40 years of growth on top of growth. There’s also the tax relief.
I also want to demonstrate to them the importance of having a pension. As teenagers, it’s probably not at the forefront of their minds. For me as a parent it’s a good thing to be able to teach them about it. And as they can’t get at the funds, it avoids temptation.
The material on the HL website is really useful for helping me decide where to invest. I’m taking a long-term view – after all, their pensions have 40 years to grow.