Babies becoming millionaires thanks to pension saving.

The number of parents paying into a pension plan for their newborn baby is increasing sharply: they all want their child to have a good financial situation in retirement.  This ‘self-invested personal pension’ (Sipp) seems to offer much more advantages for both the parents and the infant than the old-fashioned child trust funds do. The major advantage is the tax relief parents receive by contributing £88 a month into their child’s Sipp. Another great benefit is the security of the investment: children aren’t allowed to use -or to waste- the money until they have reached the age of 65. (Guardian)

Famke De Ro