Junior SIPP
A self-invested personal pension opened for a child, allowing family members to save for their retirement from an early age.
A Junior SIPP is a self-invested personal pension set up for a child under 18. A parent or legal guardian opens and manages the account, but anyone — parents, grandparents, family friends — can contribute to it. The child cannot access the money until they reach pension age (currently 55, rising to 57 from April 2028), which gives the investments decades to grow.
Contributions to a Junior SIPP receive tax relief in the same way as adult pensions. You can pay in up to £3,600 gross per year (£2,880 net), with the government adding £720 in basic-rate tax relief. This is the case even though the child has no earnings. Over many years, even modest contributions can grow substantially thanks to the power of compound returns over such a long time horizon.
A Junior SIPP offers a wider range of investments compared to a Junior ISA, including individual shares, funds, investment trusts, and bonds. When the child turns 18, they take ownership of the SIPP but still cannot withdraw the money until pension age. This long lock-in period is the main drawback — the money is completely inaccessible for decades. For shorter-term saving goals, a Junior ISA may be more appropriate. But for families who want to give a child a meaningful head start on retirement savings, a Junior SIPP can be a very tax-efficient option.