Important information - The value of tax savings depends on individual circumstances and tax rules can change over time. Investments can go down in value as well as up, so your child could get back less than invested. A Junior SIPP is a type of pension for people happy to make their own investment decisions, and is not accessible until age 55 which is likely to rise by the time your child reaches retirement. If transferring a pension please ensure you will not lose valuable guarantees or incur excessive exit penalties. If you are unsure if an investment is right for you or your child, please seek advice.
A head start
Do you wish you’d started saving into your pension earlier? A Junior SIPP (Self-Invested Personal Pension) could give a child a substantial head start in saving for their future. The 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.
Why invest in a Junior SIPP?
- Invest up to £3,600 gross per child per tax year – the taxman automatically pays 20% tax relief (up to £720) so you can put in up to £2,880.
- Investments in a pension are free from UK income and capital gains taxes. Remember tax rules can change and benefits depend on personal circumstances.
- Gifts to a child’s pension are often covered by one of the inheritance tax exemptions and so could fall outside your estate for inheritance tax purposes.
Junior SIPP charges
The annual charge for holding investments in a HL Junior SIPP is never more than 0.45%.
Your dealing and other charges will depend on the investments you choose.
Start a Junior SIPP
A Junior SIPP can be opened by completing our simple application form. If your child is over 16 they will need to sign the application, otherwise it will need to be signed by a parent or legal guardian.
You must also complete a Legal Guardian form if they are under 18.
Transfer an existing Junior SIPP
You might find it easier to manage a child’s Junior SIPP by having everything under one roof. You could do this by transferring any existing Junior SIPP accounts to HL, and see their investments in one place.
Why choose our Junior SIPP?
- An easy-to-manage account - It's easy to manage your child's account online or via the HL app.
- Help getting started - Get started with our 'Investing for children' Master Portfolio.