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What is a Junior SIPP?

Important: A Junior SIPP is a type of pension for people happy to make their own investment decisions. Investments go down in value as well as up so your child could get back less than is invested. The rules mentioned are those currently applying and could change in the future. The money can normally only be accessed from age 55 (57 from 2028). Tax reliefs depend on your child's circumstances. If you are unsure an investment is right for you or your child, please seek advice.

A Junior SIPP (Self-Invested Personal Pension) is a type of pension for a child. There are other types of children’s pensions available, such as stakeholder pensions.

  • A Junior SIPP is the same as a regular SIPP – the difference is that a parent or legal guardian manages the account, and makes any investment decisions, until the child turns 18.

  • The money in a SIPP cannot be accessed until age 55 (rising to 57 in 2028 and likely to rise further). This means a Junior SIPP has decades to mature.

  • With such a long-term investment horizon, it’s possible to follow an adventurous strategy that will hopefully bring greater rewards. This is not guaranteed as the value of investments can go down as well as up so your child could get back less than is invested.

  • Tax benefits include tax relief on money going in, possible inheritance tax exemptions for those who make contributions and tax-free growth, although the value of these benefits will depend on individual circumstances.

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Investing for children

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Important: A Junior SIPP is a type of pension for people happy to make their own investment decisions. Investments go down in value as well as up so your child could get back less than is invested. The rules mentioned are those currently applying and could change in the future. The money can normally only be accessed from age 55 (57 from 2028 which is likely to rise further in the future). Tax reliefs depend on your child's circumstances. This website is not personal advice, if you are unsure an investment is right for you or your child, please seek advice.

Could you build a £500,000 pension pot for your child?

With a Junior SIPP or any sort of child’s pension, you must be able to afford to give the money and lock it away. If you start early enough, paying in just £300 (gross) a month could build a pension pot worth more than £500,000 for a child or grandchild – see the chart below. Even saving smaller amounts can still help to generate a considerable sum (regular savings start from just £25 gross a month in our Junior SIPP). Before opening an account please view our charges.

When paying into a pension, starting early makes a dramatic difference, as the three examples below illustrate. If delayed, you could spend more than twice as much and your child could end up with just over half than if you started at birth. These are just illustrations – the actual amount your child gets could be more or less than this. The figures below show the values in monetary terms without considering inflation, which reduces the spending power of money over time.

Pension at age 65


This amount per month includes tax relief of 20%

Length of saving Net cost Pension size (age 65)
0-18 £8,640 £96,873
25-65 £19,200 £57,612
Length of saving Net cost Pension size (age 65)
0-18 £25,920 £290,620
25-65 £57,600 £172,837
Length of saving Net cost Pension size (age 65)
0-18 £51,840 £581,240
25-65 £115,200 £345,675

The figures above assume basic-rate (20%) tax relief on contributions, investment growth of 5%, charges of 1% and an annual management charge of 0.45%. The figures quoted represent the expected nominal value of the pension fund at retirement without considering the effects of inflation and the resulting reduction in purchasing power of your money. The value of investments will fall as well as rise over the period. Remember tax rules can change and any relief depends on personal circumstances.

Open a Junior SIPP