Don’t worry about the Child Trust Fund invest in pensions

Parents keen to invest in their child’s future should not be put off of the Government’s decision to axe the Child Trust Fund.

According to the NFU Mutual, pensions could be the best ‘tax-free’ way forward for investing in their child’s future.

 “Anyone who has a vested interest in a child’s future can set one up and start contributing straight away,”  says Shelagh Hamer, pension specialist at NFU Mutual.

“ Many schemes require a minimum investment of £20 a month, but with the NFU Mutual Stakeholder you can invest as little or as much as you want up to a maximum of £3,600 a year gross; that’s £2,400 more than the CTF Scheme allows.”

Though children won’t be able to access the money until they are 55 years old, many parents feel that 18 years of age is too early for their child to get their hands on the potentially large savings put away in a Child Trust Fund, Shelagh continues.