A Child SIPP could help create a generation of millionaires according to Steve Latto of Alliance Trust. He has claimed that by parents making an annual contribution of £960 to a child SIPP, they could give their children a pension pot of over £1m.
His view is mainly based on government tax relief on pensions, so an £83 monthly contribution would result in a £103.75 per month gross contribution.
According to FTadviser, Mr Latto noted “contributing to a child Sipp was a good way for parents to secure their children’s long-term financial future, particularly given the demise of final salary pension schemes and increasing longevity.”
