Personal finance expert Martin Lewis encourages grandparents to consider opening pensions for their grandchildren, highlighting the benefits of tax relief and early compound growth. Lewis emphasizes the importance of starting early and suggests a 'rule of thumb' for pension contributions based on age.
Martin Lewis has issued an alert to all grandparents - and it’s about pensions. The personal finance expert took to X to speak about how parents can also set up pensions for their children.
And there are benefits for tax too as money paid into pension schemes can get relief. Martin said: “Children can have pensions too! Almost anyone can save into a pension and get tax relief, even if they’ve little or no income. The minimum allowance is £3,600/yr . This means even a newborn baby can get a pension.
“However, I’d caution to always first look after your own finances, then look at top children’s savings and fill up a junior ISA, as they’re shorter-term priorities. Yet if you’re lucky enough to have enough to do that, then a pension for the children may be a good option.”
PENSIONS GRANDPARENTS MARTIN LEWIS SAVING RETIREMENT
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