Pensions for kids?

Soarer

Afternoon all.

Just wondering if you can start some sort of pension for your children? I've tried a search, but nothing has come up.

Thanks.

coylemj

You can start a savings fund for your children and call it whatever you like. What distinguishes a pension from normal savings is that the contributions to an approved pension scheme are (within certain limitations) tax-free. As your children don't yet have any income of their own, they can't benefit from that aspect of pensions savings so any money you set aside for them would be classed as a simple savings scheme.

The J Stands for Jay

Assuming someone will sell one to a child, you could start a PRSA, as you don't need to have any income to contribute to a PRSA. As already mentioned, there won't be any tax relief. It may be an idea to invest the money elsewhere and then have the child pay it into a pension as soon as they have income they can get the tax relief on.

Mrs OBumble

I would have thought that a fund for tertiary education would be more appropriate for a kid, then let then save for their own retirement once they start working.