Can You Open a Pension For Your Grandchildren?

Can you actually open a pension for your grandchild?Most grandparents don't realise this option even exists. A Junior SIPP lets you contribute to a pension for a grandchild from the day they're born, and the government tops up every payment with 20% tax relief automatically. Just £50 a month from birth could grow to around £146,000 by the time they reach retirement age. Max out the allowance at £240 a month and that figure could reach over £700,000.In this episode, I explain exactly how a Junior SIPP works, why only a parent can open one but anyone can pay in, and how the annual limit of £2,880 gets topped up to £3,600 by HMRC. I compare it with a Junior ISA so you can see which suits your family, and I cover the inheritance tax planning angle that's becoming increasingly important ahead of the April 2027 changes.With over 25 years advising individuals and employers on pension and retirement strategies across PwC, EY, Aon, Willis Towers Watson, and KPMG, I see this question from grandparents constantly and most are surprised by how powerful the numbers are.Watch this episode in full on our YouTube channel: https://www.youtube.com/@retirementandmoney