Start a pension for your child
The things you should know about a Stakeholder Pension for children:
- More than one of you can pay into the child's plan, so long as you
don't exceed the yearly maximum of £3,600 (this may change in future
tax years).
- You can pay into a plan for as many children as you want. You can make payments
for your own children, grandchildren, nieces, nephews and godchildren or even
children of family friends.
- The payments you make have a great potential for growth because their retirement
is such a long way off and they can't access the money until they reach age 55.
- You should remember that what your child will get at retirement age will depend on:
- how much is saved
- the performance of the funds you have chosen
- any payment breaks that are taken (stopping payments will reduce the final fund value).
- The value of your investments can fall as well as rise, and the final fund value may be less than is paid in.
- This plan cannot be cashed in at any time.
The
rewards for your child:
- Payments into a pension plan receive tax
relief, meaning the fund will be boosted by an extra 20% (for the tax year 2008/09) of every payment
that's made (this is basic-rate tax).
- Your child will have less of a burden
during their working lives to save a large chunk of their salary into a pension.
- A headstart on their savings. When your child starts earning they can add to the fund which has already built up.
Tax and legislation are likely to change in the future. The information given here is based on our current understanding of law and HM Revenue & Customs practice at the date of publication. Tax relief may alter and its value depends on your financial circumstances.
See
how tax relief would impact your payment
What to do next
Before buying a product you need to be aware of the risks and commitment involved. Details are available in our Key Features Document (SPP17).
If you'd like to take advantage of the benefits available under a Child Stakeholder, ask your adviser about our Stakeholder Pension for children
or call Standard Life Direct on 0845
272 8810 to find out how to apply. Call charges may vary. Standard Life Direct is provided by Standard Life Client Management Ltd.
Any advice given or recommendations made by Standard Life Client Management will relate to the products from subsidiaries of Standard Life plc and some external providers.
If you would like to contact a Financial Adviser but are not sure how to go
about it, try this
Find an Adviser online tool.
