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Archived article Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing, however, it may no longer reflect our views on this topic.
In our latest article, we look at why junior pensions could play a role in Inheritance Tax planning, and how families can make the most of them.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
1 August 2023
In recent years, there’s been a huge rise in the number of families contributing to Junior Self-Invested Personal Pensions (SIPPs) on behalf of their children or grandchildren. Between 2017 and 2021, the amount paid into Junior SIPPs rose by 56% from £43 million to a whopping £67 million.
But why are families putting more of their money into a junior pension for their beloved children?
For grandparents who are looking to help secure the best financial future for a child, they offer a great long-term savings option. On top of this, they offer generous tax perks, including the ability to pass on money free from Inheritance Tax (IHT) charges. Below we take a closer look at how families could make the most of junior pensions.
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