Pension UK: Britons urged to help children with retirement and Junior ISA savings | Personal Finance | Finance
Christmas often involves higher spending than usual, as people give and receive presents to their loved ones. But research from St. James’s Place (SJP) has revealed £760million worth of presents are annually unused, unwanted, exchanged or thrown away across the whole of the UK on average. As a result, to avoid waste this Christmas, Britons are being encouraged to instead consider pension or Junior ISA (JISA) saving for young people.
For those who wish to save long-term for their child, but not for the length of time as a pension, it is likely to be an appropriate option to help money grow.
According to calculations from SJP, an annual contribution of £365 – or £1 per day – invested each year from birth could transform into over £11,000 by the time a child reaches 18.
As such, after 34 years the sum could reach £25,000 – the average age Britons purchase their first home.
Junior ISAs are a popular way for people to save towards goals towards their children – such as future house deposits or university fees.
“By investing some money for their future selves, whilst focusing on the toys they really want, children can get a head start in life and still feel the joy of receiving.”
Those who wish to open a Junior ISA are encouraged to look around for the best rates.
Martin Lewis, Money Saving Expert, recently said the best rate can be found at Coventry Building Society at 2.95 percent.
Individuals who wish to start a pension are encouraged to speak to a pension adviser.
These experts are usually well versed in helping Britons to start arrangements which suit them best.