IFABrokers.co.uk – Start Young To Take The Pressure OffCategory: Finance
Article added by: IFA Brokers
Thousands of anxious parents and grandparents are setting up pensions for their young children, IFABrokers.co.uk reports today. The advantages of such a head start are hard to ignore and it is easy to understand why parents are increasingly nervous about their children’s ability to prepare for themselves.
Worrying figures from a recent survey indicate that a third of working adults are not saving anything towards retirement in either a personal or occupational pension. Yet to expect a retirement income of only £15,000 in today’s money, children will need to save the equivalent of £203,528 by the time they retire. If you start saving at 25, this means putting aside £449 a month until the age of 65.
An IFA Brokers spokesman says: "You can make a huge difference to a child’s finances later in life with even a small investment. With a large fund already behind them, your grown-up kids will be able to focus on buying property or clearing debt without the additional worry of funding a pension looming over their heads. One of the biggest advantages of setting up a pension for your children is that the Government will top up your contributions by either 22 per cent or 40 per cent, depending on whether you are a basic or higher-rate taxpayer, to a maximum of £3,600 gross a year.”
The other advantage is the huge opportunity for growth in your savings. The figures speak for themselves. If £3,600 a year is paid into in to a child’s pension from birth to 18 and then left to grow until retirement, it will be worth £1,823,988 at 65, assuming an annual growth rate of 6 per cent.
However, IFA Brokers go on to say: "You do not have to pay thousands of pounds a year to make a difference. If you put away £39 a month for the first 18 years of your child’s life, with tax relief boosting the contribution to £50 a month, it would be worth £506,064 when your child reaches 65.”
Independent Financial Advisor Brokers are the U.K leaders in providing sound, impartial advice. Providing a free and totally independent advisory service, IFAbrokers.co.uk believes that you will be best served by a specialist for your particular requirements, thereby you receive the right advice from a professional. As IFA Brokers are a totally independent advice service, and are not themselves Independent Financial Advisors, they can therefore pick and choose from the best in industry, ensuring clients get the best possible advice from the right people. Customer feedback is positively encouraged as it is used to ensure that the high quality standards of this service are maintained.
For sound financial advice and other financial services, visit www.IFABrokers.co.uk
Editor’s Note: Independent Financial Advisor Brokers is represented by online advertising consultancy, Top Position. Please direct all press queries to Billy Howe. Email: Billy@topposition.co.uk or call: 0800 094 9001.
Posted By: IFA Brokers
Web: http://www.ifabrokers.co.uk
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