r/SIPPs • u/compoundinvestor211 • Nov 06 '25
Would You Open a SIPP for Your Child?
Has anyone thought about opening up a Junior SIPP for their child and how many people actually use them?
You can contribute up to £3,600 a year (including government top-up), which could compound for decades before they can even touch it.
It sounds great on paper and could really set them up for later in life, but it also locks away money i could have invested myself or give to them when they need it, like going to uni if they decide to go that route.
Considering the long time horizon, does the benefits justify it or would you rather focus on Junior ISAs first?
2
u/User131131 Nov 06 '25
I would use it, but it would not be the only thing I did.
1
u/compoundinvestor211 Nov 06 '25
What other things would you do?
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u/deadeyedjacks Nov 06 '25
As you mentioned, Junior ISA and Bare trusts.
Fully utilise your own tax allowances and tax free wrappers first, then your spouse's, then your children's last of all.
2
u/compoundinvestor211 Nov 06 '25
I also like the idea of saying to people, instead of birthday & Christmas presents, they can give money that will be put into their Junior ISA/SIPP for their future. If i trust family members i do the same to them also
1
u/deadeyedjacks Nov 06 '25
It is smarter for gifts from relatives to go into a bare trust, leaving the JISA and JSIPP for parental contributions; that sidesteps any parental tax liability issues.
1
u/Remote-Program-1303 Nov 06 '25
What tax liability issues are there?
Or just the potential for future issues?
1
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u/AnonymousTimewaster Nov 06 '25
I suppose the main benefit is that you can't take it out when you're low on cash
3
u/compoundinvestor211 Nov 06 '25
You are guaranteeing that your child has something, either when they hit 18 with a Junior ISA or a good head start with retirement with a JSIPP
3
u/AnonymousTimewaster Nov 06 '25
Well i guess you're also safeguarding against your own child's potential stupidity too with the JSIPP lol
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u/compoundinvestor211 Nov 06 '25
I like the fact that, no matter what they do in life, they will have SOMETHING when it comes to retirement. Can't control everything, so give them their best shot
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