The coalition government have recently axed the Child Trust Fund (CTF) scheme in favour of the Junior Individual Savings Account (JISA), which is due for release on November 1st.
However many parents and grandparents are unconvinced by the JISA and are seeking another way of saving money for their children and grandchildren.
Stakeholder pension popular for children
An increasingly popular option for children is strangely enough, pensions. The stakeholder pension is a good deal for adults, but many parents are considering purchasing one for their child too.
In theory this may not be a bad idea, as starting to save for a pension from a younger age would mean those individuals will have a greater retirement income.
In the UK so far, millions of parents and grandparents are looking into what it could mean to get their child a stakeholder pension. At the moment it does not seem like such a bad idea.
Samir El-Alami, of PensionCalculator.org said, “People tend to think that pensions are for ‘old’ people. What they don’t seem to realise is that the younger you set up a pension, the longer the money will have to grow. Somebody who has been contributing £10 per month in to a pension from birth should have a retirement income larger than a 40-year old contributing £500 per month”.
Other options for parents
But there are many other options available on the market for parents concerned with building the best, most stable future possible for their child.
Foresters Friendly also provide a range of ways in which you can save money for your child. The Child Tax Exempt Savings Plan (CTESP) and the Ethical Child Savings Plan (ECSP) are great products which guarantee a safe way of saving for your child’s future. These schemes are a good idea for anyone concerned with extremely high university fees and student debt.