Start a pension for your child

• 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.
• 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 pension will be taxed as earned income.
• You should remember that what your child will get at retirement age will depend on:
  • how much is invested
  • the performance of the funds you have chosen, less any charges
  • any payment breaks that are taken (stopping payments will reduce the final fund value).
  The potential rewards for your child:
  
  
  • Payments into a pension plan receive tax relief. For example, pay in £80 and have it topped up to £100 if you are a non-tax payer or basic-rate tax payer. If you're a higher-rate taxpayer you'll need to reclaim the extra tax relief through your tax return. If you earn over £130,000 a year, you should also read about the recent tax changes to pension plans announced in the 2009 budget. Tax relief may alter and its value depends on your financial circumstances.
  • The aim is for your child to 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.

  We strongly recommend you seek financial advice before investing.

  Before buying a product you need to be aware of the risks and commitment involved. Details are available in our Key Features Document (SPP17). Stakeholder Key Features Document (pdf)

  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. Tax relief may alter and its value depends on your financial circumstances.

  See how tax relief would impact your payment
  
  What to do next
  
  If you'd like to take advantage of the benefits available under a Child Stakeholder, ask your financial 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.
  
  Standard Life Client Management advises on, and sells products from, subsidiaries of Standard Life plc and some external providers.
  
  
  

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  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.