- Published
Richard and Caitlin Brain's two children are aged just 20 months and five months respectively, yet mum and dad have already set up pensions for them.
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mum → publish → them
The Brains, who live in Swansea, south Wales, are paying £50 a month into each of their kids' accounts.
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who → live → accounts
It's money that the children won't be able to access until they are 57, under current UK private pension fund rules.
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they → access → rules
, external
So the eldest will have to wait until 2082, and the youngest until 2083.
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eldest → have → 2083
Despite the wait, Richard, 30, is convinced that he and Caitlin, 28, are doing the right thing.
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he → convince → thing
"Paying into their pensions means we can play a part in their future far beyond our own years.
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we → pay → years
And the money has decades to grow.
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money → have → decades
"
'We don't eat out as often as we used to'
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we → eat → ?
Richard's financial knowledge is explained by the fact he works for an investment firm.
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he → explain → firm
Caitlin is currently on maternity leave from her job working for the local council.
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Caitlin → work → council
He earns less than £90,000 a year, while she currently doesn't have an income as she has not yet returned to work after her statutory maternity pay of £194 a week ended.
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pay → earn → 194
In addition to their children's pensions, Richard and Caitlin have also set up Junior ISA savings accounts for them, and pay in £60 a month per child - money the kids will be able to access when they turn 18.
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they → set → 18
The couple believe this is the best of both worlds – the ISAs could help their children with university costs, starting a business or a house deposit, while the pensions are intended to provide financial security much later in life.
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pensions → believe → life
Paying a combined £220 a month into their kids' funds, in addition to £200 into their own private pensions and savings, the couple say they must live more frugally than in the past.
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they → pay → past
"We're not on the breadline, but investing this money does mean doing a little less," says Richard.
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Richard → invest → less
"We don't eat out as often as we used to, which as foodies is a pain.
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which → eat → foodies
"And we don't go as big for one another on birthdays and Christmas so that we can still do it for the kids."
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we → go → kids
'I want to retire earlier so this will help'
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this → want → ?
Pensions for children, also called Junior self-invested personal pensions (SIPPs), were introduced in the UK in 2001.
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Pensions → call → 2001
You can pay in a maximum of £2,880 per year, which the government will then top up with £720 tax relief to make a total £3,600.
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government → pay → 3,600
The popularity of Junior SIPPs has grown, industry figures show.
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figures → grow → SIPPs
One provider, Hargreaves Lansdown, says that in the 12 months to April 2026 it had seen two and a half times as many accounts open, external as in the same period a year earlier.
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accounts → say → period
Another, Fidelity, says it has seen the number of accounts more than triple since December 2023.
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number → say → December
While giving their kids a pensions head start is a powerful incentive for some parents, how do the children themselves feel about not being able to touch the money for potentially 50 years or more?
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children → give → years
Fifteen-year-old Hugo Thompson from Manchester seems unfazed.
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Thompson → seem → Manchester
His parents, who work in finance, have been paying the maximum amount into his Junior SIPP for the past 10 years.
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who → work → years
"The money invested means perhaps I'll be ahead when I'm older," he says.
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he → invest → ?
"So I won't have to put quite so much of my own money in!
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I → have → money
I want to retire earlier than the state pension age so this will all help."
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this → want → age
Hugo's mother Annabel, who works in finance, also saves into a Junior ISA for him, but says she still also invests into her own pension and savings.
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she → work → pension
"For me, Junior SIPPs should only be considered once you feel you have enough money of your own," she says.
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she → consider → own
For parents who can afford it, the money can grow substantially before the child can access it, says Jemma Slingo, a pensions specialist at Fidelity.
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Slingo → afford → Fidelity
"Paying in £50 a month from birth, including tax relief, the family would contribute £10,800 over those 18 years.
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family → pay → years
The pot could grow to around £135,000 by retirement.
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pot → grow → retirement
That's the real power of starting early - relatively modest amounts can have an exceptionally long time to compound."
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amounts → start → time
It's not just British parents that are opening long-term investments for their children.
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that → open → children
In July this year, US President Donald Trump launched a new retirement investment scheme for children called Trump Accounts.
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Trump → launch → children
Families, friends and employers can contribute up to $5,000 (£3,800) per year per child.
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employers → contribute → child
The difference with the UK is that the children can access the funds from when they turn 18, although withdrawals are subject to taxes and a possible 10% penalty if made before the age of 59 and a half.
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withdrawals → access → 59
Wally Luckeydoo, a personal finance teacher at Smyrna High School in Tennessee, has opened Trump Accounts for his two children, aged four and three.
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Luckeydoo → open → children
…and 4 more, not listed.
The Aporia
