Richard and Caitlin Brain's two children are aged just 20 months and five months respectively, yet mum and dad have already set up pensions for them. The Brains, who live in Swansea, south Wales, are paying £50 a month into each of their kids' accounts. It's money that the children won't be able to access until they are 57, under current UK private pension fund rules., external So the eldest will have to wait until 2082, and the youngest until 2083.
Despite the wait, Richard, 30, is convinced that he and Caitlin, 28, are doing the right thing. "Paying into their pensions means we can play a part in their future far beyond our own years. And the money has decades to grow." Richard's financial knowledge is explained by the fact he works for an investment firm.
Caitlin is currently on maternity leave from her job working for the local council. He earns less than £90,000 a year, while she currently doesn't have an income as she has not yet returned to work after her statutory maternity pay of £194 a week ended. In addition to their children's pensions, Richard and Caitlin have also set up Junior ISA savings accounts for them, and pay in £60 a month per child - money the kids will be able to access when they turn 18.
The couple believe this is the best of both worlds – the ISAs could help their children with university costs, starting a business or a house deposit, while the pensions are intended to provide financial security much later in life. Paying a combined £220 a month into their kids' funds, in addition to £200 into their own private pensions and savings, the couple say they must live more frugally than in the past. "We're not on the breadline, but investing this money does mean doing a little less," says Richard.
"We don't eat out as often as we used to, which as foodies is a pain. "And we don't go as big for one another on birthdays and Christmas so that we can still do it for the kids." Pensions for children, also called Junior self-invested personal pensions (SIPPs), were introduced in the UK in 2001. You can pay in a maximum of £2,880 per year, which the government will then top up with £720 tax relief to make a total £3,600.
The popularity of Junior SIPPs has grown, industry figures show. One provider, Hargreaves Lansdown, says that in the 12 months to April 2026 it had seen two and a half times as many accounts open, external as in the same period a year earlier. Another, Fidelity, says it has seen the number of accounts more than triple since December 2023.
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