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Twefs warning on stakeholder for children

Parents should think first before taking out stakeholder pensions for their young children, as they may need to access the funds before the age of 50.

The warning comes from Tunbridge Wells Equitable Friendly Society chief executive David White. White points out the cost of funding a child now aged one through a three year university degree in 17 years time is estimated to be over £30,000, according to research by the National Union of Students.

White says: “Should you tie up money in a stakeholder pension? No, until you have established your plans for funding university education, or yes, if you are one of the few who can afford stakeholder pensions for your children in addition to planning for university expenses.”


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