@antonia_investing: In the UK you can open a pension for a child from birth. Here's how it works and when it makes sense. It's called a Junior SIPP. You contribute up to £2,880 a year and the government adds 20% tax relief, bringing the total to £3,600. That top-up applies even though your child pays no tax. Anyone can contribute, not just parents. Grandparents, aunts, uncles, family friends, all welcome, as long as total contributions stay within the annual limit. Pay in the maximum every year from birth to 18, leave it invested, and at 5% average annual growth the pot is worth around £713,000 by the time your child reaches 57. Total paid in: £51,840. The rest is compounding. The important caveat: the money is locked until 57. It cannot be accessed for university, a house deposit, or anything earlier. If you want money your child can access at 18, a Junior ISA does that job, and you can run both in the same tax year. A Junior SIPP makes most sense when your own finances are already in order. If you have high-interest debt or your own pension is underfunded, those come first. But if your foundations are solid and you have even £50 a month spare, this is one of the most tax-efficient things you can do with it. This post is for educational purposes only and does not constitute personal financial advice. Pension and tax rules depend on individual circumstances and may change. Investments can fall as well as rise in value. Speak to an FCA-regulated financial adviser before making decisions about pension contributions. Sources: HMRC pension tax relief rules 2026/27 | AJ Bell Junior SIPP analysis | Bestinvest Junior SIPP projections | HL Junior SIPP 2026/27

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Thursday 02 July 2026 15:26:09 GMT