Even if you haven’t got a big pension pot already, and have never heard of a SIPP – I would encourage you do some research into the latter, as I have done recently.

My own pension pot is pretty small, something in the region of £20,000.

This is because I only paid in for a few years in my twenties, preferring to take more of a net income and invest that myself (without age related restrictions).

However a SIPP makes a lot of sense, or a SSAS if you’re a business owner.

To get your kids’ pension started before they hit working age there’s something else that’s worth considering.

I found out very recently that grandparents can invest £2,880 a year into a pension for someone under the age of 18.

When you add in the fact that the pension provider can claim back another £720 tax relief from the government that starts to get interesting.

£3,600 invested a year from birth, with 10% returns per annum (achieved through Greg Robinson’s FIRE Revolution strategies por ejemplo), would mean an 18 year old would start their adult life with £164,157 in their pension pot (assuming the government doesn’t change the rules/threshold).

Not too shabby.

I thought SIPPs were expensive to set up and only for people with big pots already.

A quick Google search will tell you otherwise.

Food for thought perhaps, providing those baby boomers can handle one less holiday a year.

All the best,

Stephen Wallis

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