There was an interesting article in the
Sunday Times on the 20th January 2019.
I have extracted some of the points
from the article below:
When a teenager was invited out for a
meal by his Grandparents last week, he assumed it was to celebrate his 18th
birthday. So he was flabbergasted to be told — even before the drinks had been
ordered — that they had saved £118,000 for him in a pension.
“I was amazed. I know what pensions are but they are not
something I had ever thought about before,” said the teenager, who prefers not
to be named.
His Grandad had taken a keen interest
in finance for many years and decided to set up a retirement fund for him when
he was born, paying in a regular sum.
£240 a month was paid in to the
pension, so a total of £51,840 was paid in and the government topped this up by
£12,960 through tax relief. With their first Grandchild’s 18th birthday
approaching, they discovered his pot had grown to £118,000.
Children’s pensions can be opened with
a monthly contribution of as little as £25 a month or a lump sum from any
adult. The maximum contribution is £2,880 a year, which grows to £3,600 with
the government top-up.
Pensions are a long term investment,
and whilst this lucky teenager will not be able to access his pension until age
55 (under current legislation), it does show the benefit of long term
investments.
If you are interested in contributing
to a pension or other tax-efficient long term investments for a child or
grandchild please do not
hesitate to contact the team at Ward Williams Financial Services Ltd on 01932 830664 or
by email on wwfs@wardwilliams.co.uk.
Photo credit: Nikoline Arns
No comments:
Post a Comment