According to research, new parents receive up to ?660 in baby gifts. This is great in the short term, but if you want to plan ahead for your child?s future, why not ask friends and families to contribute to your child?s pension instead? It could mean a ?500,000 pension pot for your child when they retire.
Some parents are helping older children get onto the property ladder as a way of securing their future, but experts at Virgin Money predict that this might not be enough in future.
By asking well-wishers to initially contribute to a pension scheme and then putting your child benefit in each week – this is about ?75 a month for the first child – your kids could end up with a pension pot of ?618,000 at age 65, even if they never pay a penny into it themselves!
You can set up a pension for a child from birth ? with investments starting from just ?1 a month. And anyone can make a contribution, from grannies to godfathers! It?s an excellent way to start building a secure financial future for your kids. They won?t be able to spend the money until they retire but you?ll be giving them a head start now so that they don?t have to save so hard later on in life.
To find out more about Virgin Money?s pension scheme for children, visit: http://uk.virginmoney.com/pension/child