Creating a large pension pot could be easier than first thought, but saving must start early. If parents put in savings of roughly £2,880 per year (£3,600 after tax relief) until their children turn 18, this could create a pot of £1,021,837 by 2061. Depending on average growth rates, a large sum could be accumulated. For instance if average growth rates of 2% and 5% mean that, by the time the child reaches its 55th birthday (2073), they would have a pot of £171,086 and £668,592 respectively. Seeking professional finical advice could help you to plan for your child’s financial future.
