Best pension for children 2014

If you've got the university fees and house deposit covered, then - as crazy as it sounds - a pension can be a great investment for kids, and they're popular among wealthier grandparents who want to set aside money for kids that won't be frittered away.

According to Aviva, £50 invested a month in a stakeholder pension could be worth £19,500 by the time they turn 18. If that same child's pension was left invested until the child reached 65, with no further contributions that £19,500 would grow to £120,000.

Our pick of the pensions for kids this year is the Scottish Life Stakeholder pension. As it is a stakeholder scheme, it is affordable with charges capped at 1.5% in the first 10 years, falling to 1% thereafter; but, unlike some of its peers, it has a wide selection of quality funds in which to invest.

Patrick Connolly, certified financial planner at IFA Chase De Vere, says: "Scottish Life sets high standards for administration and service and its individual stakeholder plan has a wider and better quality range of fund links than its main competitors." Taking the runner-up position is Aviva, which was also praised by the judges for its strong administration and quality fund selection.  


Best pension for children 2014

Number of funds within
pension: 48
Restrictions: Can invest in a maximum of 35 funds
Charging structure: 1%
Contact: 0845 605 0050


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