What is a
Junior SIPP?
Important information - A 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. Pension and tax rules can change, and so can their benefits. The money in a pension can normally only be accessed from age 55 (57 from 2028). Tax reliefs depend on your child's circumstances. If you’re not sure what investment is right for you or your child, please seek financial advice.
A Junior Self-Invested Personal Pension (SIPP) is a tax-efficient account to help you save for a child’s future.
It offers more flexibility and choice than other types of child pensions. It gives you control over the investments until the child reaches 18 and can manage their own account. And with a wider range of investment options compared to other pensions, it could open the door to more opportunities and potentially better returns.
How does a Junior SIPP work?
A parent or legal guardian normally manages the account, and makes any investment decisions, until the child turns 18. But anyone can pay into a child’s pension. For example, a grandparent might decide they want to save for their grandchild’s future.
The money in a Junior SIPP cannot usually be accessed until age 55 (rising to 57 in 2028 and likely to rise further). This means it has longer to potentially grow.
What is the Junior SIPP allowance?
The Junior SIPP allowance this tax year (2025/26) is £3,600. This includes any tax relief added by the government. You can pay in up to £2,880 every year and the government would add £720. This is known as pension tax relief.
What are the other tax benefits of a Junior SIPP?
- Tax-free investing - Like most child pensions, money in a Junior SIPP is free from UK income and capital gains tax.
- Inheritance tax savings - Making payments to a Junior SIPP could help to reduce inheritance tax bills.
- Pension tax relief - Each time you add money to a child’s pension, the government automatically adds 20% in pension tax relief.
Pension and tax rules can change, and benefits depend on your circumstances.
How much will a child's pension be worth at retirement?
Investing small amounts regularly can really add up over the long term. Let’s say you pay in £150 (including basic-rate tax relief) a month from birth and the pension investments grew by a steady 5% every year. The child pension pot would be worth almost £47,000 by age 18. Even if no more payments were made the pension could be worth over £290,000 by age 65. This assumes annual charges of 1%.
Remember though, investments can fall and rise in value, so your child could get back less than you invest. These are just illustrations. The actual amount your child gets could be more or less than this. The figures above don’t take into account inflation, which reduces the spending power of money over time.
Pension at age 65
Use the buttons below to see an illustration of how much a child’s pension could be worth by investing £50 to £300 a month. This amount per month includes tax relief of 20%.
| Length of saving | Net cost |
|---|---|
| From age 0-18 | £8,640 |
| Length of saving | Net cost |
|---|---|
| From age 0-18 | £25,920 |
| Length of saving | Net cost |
|---|---|
| From age 0-18 | £51,840 |
How to open an HL Junior SIPP
Open 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. By transferring any existing Junior SIPP accounts to HL, you can see their investments in one place.
Help choosing investments
We have plenty of tools and information, including share insight and fund research to help you choose your child’s investments with confidence.
Our experts have also highlighted funds that they believe offer excellent long-term potential and could be worth keeping an eye on. But you should only invest if the fund’s objectives match your own.
Junior SIPP calculator
Find out how much a child’s pension could be worth at retirement.
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Help and support
Take a look at our most frequently asked questions for quick answers.
If you need more assistance or have specific questions, please contact us.