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20% will invest in stakeholder for their child

More than a fifth of parents are likely to take out a stakeholder pension for their children, according to a new survey from Legal & General.

The findings indicate that parents favour stakeholder because it allows them to make provision for their children&#39s future rather than making funds readily available to them.

Fifty-seven per cent of the parents surveyed by BMRB on behalf of L&G say they are already saving at least £20 a month for their children.

L&G says parents are often surprised how much their children are likely to be ahead if they start saving early. It says a one-year-old boy whose parents pay £50 a month into a stakeholder until his 18th birthday could have a retirement fund worth £135,000 at the age of 50.

L&G director (pensions marketing) Andy Agar says: “Stakeholder pensions were introduced last April primarily to make savings for retirement attractive to low wage earners who do not have a pension. But stakeholder is the first pension plan that parents can use to help children towards a more prosperous retirement. Some parents and grandparents have already picked up on this fact.”

Wentworth Rose marketing and operations director Mark Chandler says: “One in five across the whole country would seem to be quite a high number. We definitely believe there is scope for parents looking to save for their children. If it was one in five we would be delighted.”

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