It might sound odd to many people but there are many schemes regarding children’s pension to secure their future. Many parents, grandparents and other interested parties are doing their best to secure the life of their children by doing effective retirement planning.

A children’s stakeholder pension is no different from any other pension scheme. Anyone can deposit funds into the pension fund for the children. The parents should be aware of it so that the pension funds are deposited in the proper manner.

There is a certain amount of money that you can deposit into the child’s personal pension account. It is free from income and capital gain taxes. Hence the funds deposited into the children’s pension account will grow very faster over the period of time.

If you start a children’s pension plan after their birth and you are depositing a certain amount of money for 16 to 18 years, you should be able to accumulate enough funds into that account that will secure your child’s future by every possible means. It will give your child a substantial head start.

If you don’t use the funds available in the pension account until retirement, the returns will even get better. When you compare that to a scheme where you start depositing the money after the age of 18, the figure is around half as much despite requiring 42 years of contributions.

If you are interested in starting a children pension scheme, speak to your financial advisor. You should consult for the best available rates since it is an investment for a very long period of time where even the slightest difference in the rate of interest matters. After you have chosen a pension plan, you can make regular contributions, subjected to the minimums required by the scheme. While you are depositing the funds into the pension account, make sure that you keep an eye towards it and speak with your financial advisor regularly to ensure that you are getting the most from your money that will be used to secure your child’s future.

This entry was posted on Monday, June 15th, 2009 at 5:35 pm and is filed under Children’s Pension Scheme. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.