Child PensionsToday, parents and grand parents are increasingly taking out pensions in order to kick start their children / grand children’s retirement funds and maximise tax relief. One major provider of pension plans has in the last 12 months seen one in ten pensions being taken out for children and half of them being under five. Your child or grandchild could end up with a pension fund worth more than £1.4 million* by the age of 65 by investing twice the child benefit (approx £150) every month to the age of 20. The figures assume that no further contributions are made. A pension fund can be set up from birth and this allows parents/grand parents to contribute £3,600 pa making a net contribution of £2,880 after 20% tax relief. Parent and grand parents often comment that they want their off spring to benefit at an earlier age, and they certainly do so, for example today’s young parents often cannot afford to make pension contributions due mortgage payments, school and university costs. Paying now may alleviate the need to pay further contributions in the future and provides access to the existing generous pension rules. There is no guarantee that such generous tax reliefs will be retained by future governments. For a personalised quotation or further information, please email us on info@braemarwm.co.uk or telephone 0161 980 7981 * Source – Clerical Medical Feb-07 Please note – these figures are only illustrative and are not guaranteed. What you will get back depends on how your investments grow. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. |
Pension Terms Explained ... |
Braemar Wealth Management (NW) Limited is authorised and regulated by the Financial Services Authority. Braemar Wealth Management (NW) Limited is entered on the FSA register (www.fsa.gov.uk/register/) under reference 425022. The FSA does not regulate some forms of tax planning and investment structures. |
|
