Stories

Mon, 05 Oct 2026

Mon, 05 Oct 2026 We're saving £100 a month into pensions for our toddler and baby - here's why

A growing number of parents are opening retirement funds for their children.

* Richard and Caitlin Brain have set up pensions for their two young children, aged 20 months and five months, with £50 monthly contributions each
* The children won't be able to access the funds until they are 57, under current UK private pension fund rules, meaning the eldest will wait until 2082 and the youngest until 2083
* Richard believes that paying into their pensions means they can play a part in their future beyond their own years and allows the money to grow over decades
* The couple also have Junior ISA savings accounts for their children, with £60 monthly contributions each, which the kids will be able to access when they turn 18
* By saving and investing, Richard and Caitlin must live more frugally, cutting back on eating out and reducing spending on birthdays and Christmas
* Pensions for children, also called Junior self-invested personal pensions (SIPPs), were introduced in the UK in 2001 and allow a maximum annual contribution of £2,880
* Industry figures show that the popularity of Junior SIPPs has grown, with some providers seeing significant increases in accounts opened over the past year
* Children who receive these pensions may be ahead financially when they retire, as seen by Hugo Thompson, whose parents have been paying into his Junior SIPP for 10 years.