Starting a Pension for a Newborn
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My son and his girlfriend are about to have a baby. At the moment, the baby's name is "Peanut".
Peanut is due to be born in April 2026.
I think that anybody can fund Peanut's pension by gifting Peanut £2880, and that money being invested in a pension in Peanut's name. Please confirm.
Can the gift be transferred directly into Peanut's pension and Peanut benefit from the tax relief, or does the pension have to be funded from an account in Peanut's name?
What documentation does Peanut need to open a pension account with Cobens?
Who needs to control Peanut's pension until they are old enough to control it themselves?
How old does Peanut need to be to gain control of the pension?
If Peanut is born before 5th April, can Peanut's pension be invested for the FY24/25? If so, what documentation is required, and when is the latest date for Cobens to receive the documentation?
Thanks, Siri
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Have you thought about doing a ‘pretend’ application within your dashboard? Obviously not pressing the submit button! I recently set one up for my daughter within my dashboard, managed by me and deposited by me. Waiting for the 20% bonus to drop, but may take a few months.
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Have you thought about doing a ‘pretend’ application within your dashboard? Obviously not pressing the submit button! I recently set one up for my daughter within my dashboard, managed by me and deposited by me. Waiting for the 20% bonus to drop, but may take a few months.
@n5tew Is the 20% bonus not linked to the NI number of the account?
If not, I'd do it. I have a dog, two cats and a couple of degus who could also benefit from pensions
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My son and his girlfriend are about to have a baby. At the moment, the baby's name is "Peanut".
Peanut is due to be born in April 2026.
I think that anybody can fund Peanut's pension by gifting Peanut £2880, and that money being invested in a pension in Peanut's name. Please confirm.
Can the gift be transferred directly into Peanut's pension and Peanut benefit from the tax relief, or does the pension have to be funded from an account in Peanut's name?
What documentation does Peanut need to open a pension account with Cobens?
Who needs to control Peanut's pension until they are old enough to control it themselves?
How old does Peanut need to be to gain control of the pension?
If Peanut is born before 5th April, can Peanut's pension be invested for the FY24/25? If so, what documentation is required, and when is the latest date for Cobens to receive the documentation?
Thanks, Siri
Hi Siri
Congratulations on the impending grandparent status.
Yes anybody can fund the contribution. The pension is set up in Peanut's name and the tax relief is claimed and allocated to that scheme.
The parents set the account up and act as "trustees" controlling the account until Peanut is 18 at which point it becomes Peanuts.If Peanut is born in tax year 25/26 contributions and the scheme is set up in that tax year contributions can be made for that year.
When the account is set up we may need a copy of the birth certificate.Hope that helps, drop me a message if you need any help
Cheers
Nk
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Hi Siri
Congratulations on the impending grandparent status.
Yes anybody can fund the contribution. The pension is set up in Peanut's name and the tax relief is claimed and allocated to that scheme.
The parents set the account up and act as "trustees" controlling the account until Peanut is 18 at which point it becomes Peanuts.If Peanut is born in tax year 25/26 contributions and the scheme is set up in that tax year contributions can be made for that year.
When the account is set up we may need a copy of the birth certificate.Hope that helps, drop me a message if you need any help
Cheers
Nk
@Nik-Burrows Thanks, Nik
Much as I thought with the exception that direct funding, as a gift, is allowed.
What happens if Peanut is born towards the end of FY24/25? Ideally, I'd want to gift Peanut 2x £2880 if possible, and Rachel from Accounts can gift Peanut 2x £720
.Siri
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Hi Siri
It would be the 25/26 year now, if the birth is really close to tax year end just drop me a mail and I'll get the contribution set up.
Cheers Nik