A Junior Self-Invested Personal Pension (SIPP) is a pension for your child that offers a tax-efficient way to save for their retirement.
A Junior SIPP is a type of children’s pension that offers significant tax relief, making it a highly tax-efficient way to save for your child’s future. Through Junior SIPP tax relief, children can benefit from up to 20% government contributions on savings of up to £3,600 per tax year. This means you only need to contribute £2,880 into a Junior SIPP, while the government covers the remaining 20%, boosting your child’s pension pot and retirement fund.
With a Junior SIPP, the savings and investments are sheltered in a pension ‘wrapper’ until your child reaches retirement age. At Killik & Co, our Junior SIPP allows you to invest in a variety of options through our Managed or Advised services, tailored to your preferences and experience.
What are some of the benefits of a Junior SIPP?
Whether you prefer to manage your child’s investments yourself or have an Adviser manage them for you, our Junior SIPP gives you greater control of your child’s pension, with expert advice every step of the way. In addition to an allowance of up to £3,600 per year for tax-efficient investing (provided your child is a UK resident), a Killik & Co Junior SIPP offers the following benefits:
Pension tax relief, which effectively increases your own contributions
Control passes to your child at 18 but the money is inaccessible until retirement age
No minimum investment requirement
No cost from Killik & Co to open or transfer from another pension
The downsides of contributing to a Junior SIPP include that the funds contributed cannot be accessed until the child reaches retirement, which means that a Junior SIPP will not be suitable for those looking to fund short-term financial goals. The contribution allowance is also relatively low, so we often recommend clients open both a Junior SIPP and Junior ISA to take full advantage of tax-efficient investing options for their children.
Capital at Risk
Past performance is not an indicator of future returns. Please remember as with all investments your money can rise and fall.
Who are Junior SIPPs suitable for?
Junior SIPPs are for children to grow their retirement pot over their lifetime. They can be opened by parents or guardians of any child who is a UK resident, under the age of 18. Grandparents, family members and anyone else can also make contributions as long as the total does not exceed the annual limit.
With growing pressure for future generations to fund their own retirement, this could provide a welcome head start for any child. Anyone contributing to the SIPP also has the assurance that the investments cannot be accessed before retirement age and used for other purposes.
What's the difference between Junior SIPPs and Junior ISAs?
Junior SIPPs and Junior ISAs are wrappers that offer a tax-efficient way to save for your child’s future. While there are several differences between them, one of the key ones is that Junior SIPPs cannot be accessed until later in life, allowing more time for savings to grow and benefit from compounding.
Junior SIPP
Allowance: up to £3,600 per tax year until age 18
Tax relief: up to 20% government contribution
Access: funds can be withdrawn at age 55 (rising to age 57 from 2028)
Junior ISA
Allowance: up to £9,000 per tax year until age 18
Tax treatment: no tax payable on interest or investment gains
Access: funds can be withdrawn at age 18
Please note you can contribute to both a Junior SIPP and a Junior ISA in the same tax year.
Tax Treatment
The tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Junior SIPP calculator
Use our Junior SIPP calculator to see how much your child’s pension could grow to based on the contributions you have invested by the time your child retires. The SIPP benefits from tax relief, and starting early, perhaps from birth, helps to maximise the amount of time for compounding until retirement.
Whether you are looking for a Managed or Advised Junior SIPP, we can help invest across a range of tax-efficient investment wrappers for you and your family.
See what some of our clients have to say about us or contact us to speak to one of our Advisers directly about your requirements.
"Through his extensive knowledge and experience, he is able to advise and guide in all investment and savings matters, and explain clearly to someone with little knowledge in these matters."
Alison, East Sussex
Bronwen Horton
Senior Wealth Planner
"I have worked with Bronwen for over two years, and I could not have had a better person to help me with Wealth Planning. Knowledgeable, efficient, empathetic and an extremely effective communicator - with a good sense of humour. Investment help and advice, especially for busy working women, is so important and Bronwen has given me that advice in spades."
Penny Noble
Jonathan Drysch
Partner, Associate Planning Director
"In recent years, my family have needed a comprehensive understanding of our complicated financial landscape. We wanted to optimise returns on our savings and formulate a robust plan for retirement and provide financial support to the wider family. Jonathan and his dedicated team have played a pivotal role in bringing a conclusive end to this journey, offering invaluable insights and strategic solutions. We extend our sincere gratitude and anticipate a valued partnership for the future."
Client of Jonathan Drysch
Paul Martin
Partner, Esher Branch Manager
"Taking time to really understand my requirements now and later in life, my approach to risk, and the lifestyle I hope to maintain. Paul explains the markets and his investment decision in layman's terms which inspires confidence in his advice."
Lisa, London
William Stevens
Partner, Head of Financial Planning
“The advice and perspective received from the entire team at Killik & Co during the planning process has been exceptional. I have much greater clarity and a renewed sense of confidence in my financial future and retirement thanks to their efforts.”
Wealth Planning Client
Emma Tuckett
Investment Manager
"A personal, polite, informative and most importantly, considerate approach to someone who is naturally hesitant and anxious."
Helen
Investors Chronicle & Financial Times
Wealth Manager
5* Winner
Investors Chronicle & Financial Times
Selective ISA Provider
5* Winner
Investors Chronicle & Financial Times
Selective SIPP Provider
5* Winner
Past performance is not an indicator of future results
Frequently asked questions about our Junior SIPP
What is the age limit for opening or paying into a Junior SIPP?
You must open and contribute to a Junior SIPP before a child turns 18 for them to benefit from the tax relief available. While the Junior SIPP will be transferred to the child at age 18 for them to manage, the funds will not be accessible until retirement age.
Can I open a SIPP on behalf of my child?
Yes. Any parent or guardian of a child who is a UK resident can open a SIPP for them. Once opened, anyone can contribute to the SIPP to help boost the child’s savings.
Can I claim higher-rate tax relief on contributions to my child’s SIPP?
You cannot claim higher-rate tax relief on contributions to your child’s SIPP, but a Killik & Co Adviser can help you identify alternative options for tax relief to help you meet your financial goals.
What is the junior pension allowance for 2024/25?
The junior pension allowance for the 2024/2025 tax year is £3,600. However, you only need to contribute £2,880 to a Junior SIPP, as the government provides the remaining 20% as tax relief.
What is the maximum amount I can invest into a Junior SIPP?
The maximum amount you can invest into a Junior SIPP for the 2024/2025 tax year is £2,880. Some providers may accept additional contributions, however, no tax relief is available beyond this amount.
How much does a Killik & Co Junior SIPP cost?
There is no cost to open a Killik & Co Junior SIPP or transfer across an existing pension (although it is worth checking there are no exit charges from the provider you are leaving). There are no charges for cash contributions including direct debits, however, given the flexibility and breadth of investment and benefit options with our SIPP, there are a range of other administration fees which may be applicable, and which are detailed here in our SIPP rate card.
There will be fees in connection with the other services you select, such as for investment management and advice. Our Advisers can discuss these options with you and confirm the charges you can expect.
What is the best child pension or Junior SIPP?
The best pension for a child allows you to save in a tax-efficient manner and provides sufficient control over your child’s investment portfolio. Unlike some junior pension options, a Killik & Co Junior SIPP is managed by an Adviser, offering you expert support every step of the way.
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