To start a pension for your child you must be:
- The child's legal guardian (normally the parent they live with).
- Aged 18 or over.
- A UK resident.
Your child also needs to be a UK resident.
Yes. If you want to save for more than one child you can open a stakeholder pension for each of them. In each child's pension you can get tax relief on up to £2,880 each year. Tax is dependent on individual circumstances and may change in the future.
Only if you are also their legal guardian. Otherwise, no. However, you can pay into your grandchild's pension once it is set up. So ask the child's parents or guardian to start a pension for them, then when it is set up you can pay into it.
Investing in stock market shares is not without its risks. They can rise significantly in value over many years, go into periods of decline, or fall suddenly in value, with no guarantees you will get back the full amount you invest.
The key point to remember is that saving into a pension is a long term investment, and the longer you remain invested in the stock market the better you tend to do.
Please note, under the current rules your child can't access their pension benefits before the age of 55, even if they retire from work earlier. Also, the amount of pension income provided in their retirement fund will depend on a number of factors, including investment returns, interest and annuity rates when you take your pension benefits.
Some savings products give you the right to change your mind and cancel your plan within a certain period. You do not have this right to cancel stock market based investments like the Virgin Stakeholder Pension that are sold over the phone or online.