_ 1 Stop Independent Stakeholder Pension Advice _ Children's Pensions

Make a Child A Pensions Millionaire Stakeholder Cafe.com Quick Links:   Quotations   Compare & Buy Pensions   Get Help or Advice Children are now able to join a pension scheme in their own right.  This new type of pension scheme started on 6 April 2001 and is called a Stakeholder Pension .  You can take out a pension scheme for your child or grandchild.  Childrens Pensions - Stakeholder pensions are available to all ages including children.  Tax relief is given at the basic rate of tax (currently 22%) meaning that for every £1 invested for a child the government will invest over 28%.  This is a fantastic gift for children.  As most children do not work, they will only be allowed to contribute up to £3,600 gross until they start earning. Even grandparents can make contributions to a Stakeholder Pension for their grandchildren.  Note: when making contributions such as this you should be aware that they will fall within the annual gifting allowances for Inheritance tax purposes.  Visit Inheritance Adviser.com to find out more.   Join OUR Children's Millionaires Club     Invest in Stakeholder for your children or grandchildren and you could make them pensions millionaires.  Here's how - Family Allowance is currently £16.05 per week for the first child (2003/2004) that's £69.55 per month.  (Alternatively you may consider other investment policies for children visit Savings Adviser.com for ideas).  With tax relief, £69.55 per month would be enhanced by the Government to £96.60 per month.  Invest £96.60 per month (£69.55 per month family allowance) for 18 years(assuming the child stays in until 18th birthday education and assuming family allowance increases by trend inflation at 2.5% pa).  Then stop contributing and freeze the pension until age 65.  Assuming Stakeholder Pension Charges at 1% pa (deducted monthly) and a gross investment return of 7% per annum (credited monthly) this would then be worth £49,632.09 at age 18.  If this was then left invested until retirement say to age 65 it would grow to a fund of £336,630 (at 5% p.a.  growth), £826,839 (at 7% p.a.  growth) and £2,144,871! (at 9% p.a.  growth).  Your Child May Become A Pension Millionaire Just By Investing The Family Allowance! The above assumes a gross investment into a Stakeholder Pension scheme of £96.90 p.m.  for somebody born today.  Contributions are made on a monthly basis and paid net of basic rate tax of 22%.  Charges are assumed at a maximum of 1% per annum, deducted from the fund on a monthly basis.  Contributions are assumed to cease after 18 complete years.  The investment return is based growth rates of 5%, 7% and 9% per annum and assumes that the fund remains invested until age 65.  The value invested can fall as well as rise and is not guaranteed.  Stakeholder Cafe.com Quick Links:   Quotations   Compare & Buy Pensions   Get Help or Advice