Answers · UK 2025/26
Can I open a Junior SIPP for my child and how much can I pay in?
Yes. A Junior SIPP is a pension for a child under 18, opened and run by a parent or guardian. You can contribute up to GBP 2,880 net each year, and the government adds 20% basic-rate tax relief automatically, topping it up to GBP 3,600 gross. The child takes control at 18 but cannot access funds until pension age.
Full answer
A Junior Self-Invested Personal Pension (Junior SIPP) is a personal pension started for a child by a parent or legal guardian. It works like an adult SIPP - investments grow free of UK income and capital gains tax inside the wrapper - but the long time horizon makes it a powerful compounding vehicle. Contributions and tax relief: for a non-earning child, the maximum you can pay in is GBP 2,880 net per tax year. HMRC adds 20% basic-rate relief on top, even though the child pays no tax, bringing the gross contribution to GBP 3,600. So GBP 2,880 of your money becomes GBP 3,600 invested - an immediate uplift. Anyone (parents, grandparents, others) can contribute, but the GBP 3,600 gross cap per child still applies. Worked example: pay in GBP 2,880 in 2026/27 and the pension receives GBP 720 in relief, making GBP 3,600 working from day one. Repeat over many years and the combination of relief plus decades of growth is substantial - though returns are not guaranteed and investments can fall. Who it suits: families wanting to give a child a long-term retirement head start and who do not need access to the money. The trade-off is access. The child legally takes over control of the account at 18, but cannot draw the money until the normal minimum pension age, so this is genuinely locked away for decades. For goals before retirement - university, a first home - a Junior ISA or LISA is more appropriate. 2026/27 note: the standard pension Annual Allowance is GBP 60,000, but that is not the constraint here; the GBP 3,600 gross relievable limit for a non-earner is what governs a Junior SIPP. Use a pension or compound-interest calculator to project growth over an 18-plus year horizon.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.