A Junior Self-Invested Personal Pension (Junior SIPP) allows parents, guardians, and family members to save for a child’s retirement from an early age. Contributions benefit from 20% government tax relief, and investments grow free from UK income and capital gains tax — giving a powerful boost to long-term savings.
For the 2025/26 tax year, you can contribute up to £2,880 net (£3,600 gross with tax relief). Unlike other savings accounts, funds are locked away until the child reaches the minimum pension age (currently 55, rising to 57 from 2028), making this a true long-term planning tool.
Key Benefits:
- Tax relief on contributions — a 25% boost from the government, even without earned income.
- Tax-free growth — no income tax or capital gains tax on investments.
- Compound growth potential — decades of growth before retirement withdrawals.
- Estate planning advantages — contributions may reduce inheritance tax liabilities.
Junior SIPPs can invest in a wide range of assets, including shares, bonds, funds, ETFs, and investment trusts. Parents or guardians manage the account until age 18, at which point control passes to the child, but funds remain inaccessible until retirement age.
At Tacit, we offer Discretionary Managed Junior SIPPs for professional oversight and Self-Managed Junior SIPPs for those who want direct control. Assets are held securely with AJ Bell Securities Ltd, ensuring strong safeguards and specialist administration.
Download the full guide to explore eligibility, contribution strategies, estate planning uses, and how a Junior SIPP could support your family’s financial future.
