Junior SIPP Calculator & Guide | SIPP Calculator

With an 11-month-old daughter, I hadn't expected to be thinking about her retirement quite yet! But I recently came across Junior SIPPs on Instagram (of all places), and the idea stayed with me long enough that I wanted to look into it properly.

What caught my attention was that a child could receive pension tax relief without earning a penny, giving even a small contribution a useful boost before it has decades to grow. I spend a lot of time thinking about pensions, so I was a little surprised that I'd only just learnt about this particular way of saving for her.

Of course, the big numbers in a social-media post don't tell you much about how the account would fit into family life. I wanted to know whether she could use the money for a first home, what would happen when she turned 18, and whether putting it into a pension might mean missing an opportunity to help her when she needed it more.

After working through HMRC's guidance, MoneyHelper and the providers' own terms, I can see a place for a Junior SIPP alongside other savings for a child. The important word there is “alongside”: money set aside for her retirement would serve a very different purpose from money she could use to get started as a young adult.

Junior SIPP Calculator

I've included a calculator so you can change the contribution, your child's age and the assumptions rather than take my £50 example at face value. It starts with £50 a month from age one to 18 (the example I explain later in the guide); changing the figures updates the chart and shows how much comes from family payments, tax relief and investment growth.

The return is after fees, and the figure in today's money allows for inflation from the start of your illustration. I've kept this model to a non-earning child's contributions up to age 18 (so the maximum regular family payment is £240 a month). It doesn't assume they'll keep paying in throughout adult life, or promise they'll be able to access the pension at the age you've chosen.

What is a Junior SIPP?

A Junior SIPP is a self-invested personal pension opened in a child's name, with the same basic purpose as an adult pension: building money for retirement. The “Junior” part describes who the account is for, rather than a promise that it pays out on their eighteenth birthday (an important distinction if you're comparing it with a Junior ISA).

A parent or legal guardian opens and manages it while the child is young. The money belongs to the child, and the provider holds it within a pension arrangement. Depending on the provider, it can be invested in funds, shares, exchange-traded funds and other permitted investments.

The SIPP is the account structure rather than the investment itself, so opening one isn't necessarily the end of the job. I'd want to check where each contribution goes, what it buys and whether the tax relief is invested automatically when it arrives.

MoneyHelper's explanation of SIPPs is a useful starting point for understanding investment choice, charges and pension access. The junior version applies those pension principles to a child.

The essential numbers for 2026/27

For a child with no relevant UK earnings, the usual tax-relieved maximum is £2,880 paid in during a tax year. The pension provider claims £720 in basic-rate tax relief, making £3,600 in the pension. Spread evenly over a year, that is £240 a month from the family and £60 a month in tax relief.

The tax year runs from 6 April to 5 April. The £2,880 is shared across everyone contributing and across the child's pensions. It is not a separate limit for each parent, grandparent or account.

At 18, she would take control of the account, but she wouldn't be able to spend the money. It would remain in her pension until she reached the permitted access age, currently 55 and rising to 57 on 6 April 2028. For someone as young as my daughter, I think of 57 as a starting point for planning rather than a date to put in the diary, because the rules could change again over the next five decades.

Those are the figures I would keep in mind before looking at any provider's growth illustration. They describe what I am actually committing to: a gift to my daughter for much later in her life.

Why Junior SIPPs are attracting more attention

It isn't just my Instagram feed: Junior SIPPs are growing in popularity among parents and grandparents, according to AJ Bell, which discussed the trend on 16 October 2026. I can understand why the combination of a tax-relief top-up and a very long investment horizon is getting people's attention.

For some families, knowing the gift can't simply be spent at 18 is part of the appeal too. AJ Bell also points to families reconsidering how they pass wealth between generations, although that raises its own questions about gifts and inheritance tax, which I've covered further down.

Best Junior SIPP Providers

Once I'd understood the basics, I wanted to see what opening an account would actually involve. I checked the dedicated Junior SIPP pages at Fidelity, AJ Bell and Hargreaves Lansdown rather than assuming their adult SIPP prices would apply (they don't always).

These are the published charges I checked on 2 November 2026. I've linked both the official product information and our own provider reviews, so you can look beyond the headline fee.

Fidelity: no junior-account service fee

Fidelity's Junior SIPP currently has no service fee on investments held in junior accounts and offers regular savings from £20 a month. Its charges page makes clear that underlying investment charges still apply. Exchange-traded investment dealing is also chargeable: for example, £7.50 for an online deal and £1.50 for eligible regular-plan deals.

That makes Fidelity worth looking at for a small starting pot, but “no service fee” doesn't mean every investment or transaction is free. Our Fidelity SIPP review looks more broadly at the platform, its investment choice and service; the junior-specific prices above are the ones relevant here.

AJ Bell: fund and share choices with regular investing

AJ Bell's Junior SIPP charges currently include a 0.25% annual account charge on the first £250,000 in funds. Shares have a 0.25% account charge capped at £10 a month. One-off online fund deals cost £1.50 and standard share deals £5. Eligible regular monthly investing has no dealing charge, with the product page advertising a £25 monthly starting amount.

For a family making small regular payments, I'd pay particular attention to whether the intended investments qualify for that free regular-investing service. Our AJ Bell SIPP review covers the wider platform and investment range.

Hargreaves Lansdown: check the junior tariff

Hargreaves Lansdown's Junior SIPP tariff currently charges 0.35% annually on the first £250,000 in funds. Shares and other equities are also charged at 0.35%, capped at £12.50 a month. One-off online fund trades are £1.95 and share trades £3.95; monthly regular investing by Direct Debit has no dealing charge. Underlying investment costs remain additional.

The fees are only part of the comparison, particularly if you value research and support while choosing investments. I've covered that broader picture in our Hargreaves Lansdown SIPP review, and our AJ Bell versus Hargreaves Lansdown comparison is useful background on the two platforms. Those reviews discuss adult accounts, so I wouldn't substitute their pricing for the junior tariffs here.

What do those fees mean in pounds?

On £10,000 held entirely in funds, the headline annual platform charge would be £0 at Fidelity, £25 at AJ Bell and £35 at HL under those junior-account tariffs. That excludes fund costs and trading, and assumes the balance stays at £10,000 throughout the year.

I'd also compare investment availability, family-account access, payment methods, transfer support and the charges that apply after 18. A good account for a small monthly fund investment may not be the cheapest for frequent share trading. Our best SIPP providers guide gives you a wider view of the market, while the junior terms above keep this comparison relevant to a child's account.

My verdict: Fidelity is the best Junior SIPP for regular fund investing

Of the three providers I've compared, Fidelity would be my choice for a child's pension built through regular fund contributions. The absence of a junior-account service fee is a meaningful advantage over AJ Bell and HL, particularly when the aim is to leave the investments growing for years rather than trade frequently. The £20 monthly starting point also makes it accessible for families beginning with a modest amount.

AJ Bell is a strong alternative if you want to buy shares or ETFs through eligible free regular investing, because Fidelity's dealing charges can change the total-cost comparison. HL may appeal if its research and support are particularly useful to you, but its higher fund platform charge wouldn't make it my first choice for this purpose. For straightforward, long-term fund investing in a Junior SIPP, my pick is Fidelity.

Contributions and tax relief

Can a baby really receive pension tax relief?

Yes. Pension tax relief is not restricted to people currently paying Income Tax. HMRC's guidance on pension tax relief explains that someone with no earnings can normally pay £2,880 into a relief-at-source pension each tax year and receive basic-rate relief.

This was the part I wanted to check most carefully, because the percentages can sound contradictory. If I pay £80 into an eligible Junior SIPP, the provider claims £20, making £100 in the pension. The relief is 20% of that final £100, which is the same as adding 25% to the £80 I actually paid.

So £50 becomes £62.50, £100 becomes £125, and £2,880 becomes £3,600. Saying “a 20% top-up on what you pay” gets the arithmetic wrong.

The provider normally claims the relief from HMRC. It may arrive after the original contribution, rather than immediately. I would check the provider's processing times and whether the added cash needs a separate investment instruction.

Can I claim my own higher-rate tax relief on her pension?

No. A contribution to my daughter's pension is assessed using her circumstances, not my Income Tax band. Paying into her Junior SIPP does not give me a personal higher-rate pension tax-relief claim.

This also means a grandparent's age or tax band does not determine the child's relief. A grandparent over 75 can potentially make a cash contribution to an eligible child's pension even though contributions to the grandparent's own pension would no longer qualify for relief. Fidelity explains these third-party contribution rules.

The contribution normally uses the child's pension limits, not the parent's personal pension allowance. It should still be recorded as a gift, including for any relevant inheritance-tax planning. Our guide to pension tax relief explains how contributions to your own pension differ.

What if my child earns money, or we miss a tax year?

The £3,600 gross figure is the usual tax-relieved limit for a non-earner, rather than an absolute legal ceiling applying to every child in every circumstance.

A child with relevant UK earnings may be eligible for relief on gross personal contributions up to the higher of £3,600 or 100% of those earnings, subject to wider pension rules and the provider's terms. The general annual allowance is a separate limit. I would check the position with the provider before paying more than its usual Junior SIPP maximum.

Relevant earnings generally mean income such as employment pay or self-employment profits. Ordinary savings interest, dividends, birthday money and a parent's earnings do not become the child's relevant earnings simply because they help fund the pension.

Missing a year does not let a non-earning child double the £3,600 tax-relievable amount the following year. Carry forward can help with the separate annual-allowance calculation, but it does not remove the current year's earnings-based tax-relief limit. There is no need to rush into an unsuitable commitment just because a tax-year deadline is approaching.

Who can open a Junior SIPP, and who can contribute?

Providers normally require the child to be under 18 and UK resident, with a parent or legal guardian opening the account. The provider will check identity, parental responsibility and eligibility. An under-16 child does not need to have received a National Insurance number before a Junior SIPP can be opened.

Grandparents, other relatives and friends can contribute once the account exists, subject to the provider's payment procedures. A grandparent who is not the legal guardian cannot assume that being an existing customer lets them open the child's account themselves.

For example, if grandparents contribute £1,000 and the parents contribute £1,880 in a tax year, they have collectively paid the usual £2,880 net maximum for a non-earning child. The £720 tax relief brings the combined contribution to £3,600.

I would keep one record of payments from everyone. Birthday and Christmas contributions could be a thoughtful way to fund an account, but several well-meaning relatives should not each assume they have their own allowance.

What an early start could be worth

The appeal for me is that a small contribution made early could remain invested for decades. Returns earned on the original investment can themselves earn returns. Tax relief increases the starting amount, and investments within a SIPP are generally sheltered from UK Income Tax and Capital Gains Tax.

That does not make the account risk-free. The investments can fall in value, and a long holding period is not a guarantee of a particular return. But a pension for a baby has a very different timetable from saving for school costs or a deposit in a few years.

She could start work with some pension savings already invested, which I'd be pleased to have helped with. I'd still expect her to build on those savings through her own contributions and a workplace pension, rather than assume what we paid in during childhood would cover her retirement.

My £50-a-month example

I modelled a simple example close to my own stage of parenting: £50 a month paid from a child's first birthday until age 18. With basic-rate relief, £62.50 enters the pension each month. Over those 17 years, the family pays £10,200 and tax relief adds £2,550.

At an illustrative 4% annual return after all charges, the pension would reach approximately £18,097 at 18. If contributions then stop completely and the same return continues, it would reach approximately £83,541 at 57.

The inflation-adjusted figure is more useful than the headline alone. With inflation averaging 2% a year over the 56 years from age one to 57, that £83,541 would have the purchasing power of roughly £27,561 at the start of the illustration.

Different returns change the outcome substantially. At 2% a year after charges, the age-57 pot would be about £32,788, or £10,817 in starting-year money. At 6%, it would be about £210,910, or £69,580 in starting-year money.

I calculated those figures using 204 end-of-month payments, the monthly equivalent of each annual return, and no contributions after 18. They assume tax relief is invested alongside each payment, fixed cash contributions and no withdrawals. Actual tax-relief timing differs between providers. I haven't deducted any tax she might pay when taking money out, and I've used age 57 for the calculation even though she may have to wait longer if the rules change.

What appeals to me is being able to pay in while she's young and leave the money invested after those payments stop. But the difference between the 2% and 6% examples is large enough that I wouldn't rely on any one projection when deciding what she might need later.

Choosing between a Junior SIPP and a Junior ISA

A Junior ISA is normally more relevant if the money is intended for early adult life. Under the government's Junior ISA rules, the 2026/27 allowance is £9,000, the child can take control at 16, and they can withdraw from 18.

A Junior SIPP receives pension tax relief but normally remains inaccessible until pension age. A Junior ISA does not receive that pension top-up, but withdrawals are tax-free. Both belong to the child. Neither allows me to take the money back for my own spending.

For my daughter, those accounts would serve different purposes. A Junior ISA could help with education, a first home or starting adult life. A Junior SIPP could help with retirement. They can sit alongside each other, and paying into one does not use up the other's separate limit.

The less comfortable part of a Junior ISA is that the child decides what to do with the money at 18. But locking money away until retirement is a very big response to a worry about teenage spending. I would rather make that decision around when she is likely to need support.

Savings or investments held in a parent's own name offer a different kind of flexibility: the parent retains ownership and decides when to make a gift. Those assets use the parent's own allowances and remain subject to their tax and estate circumstances.

Where a Junior SIPP would fit into family finances

I would consider one for money I could comfortably give away for my daughter's retirement, after keeping enough available for our family's foreseeable needs.

I'd want to deal with expensive debt, keep an emergency fund and make good use of employer pension contributions before paying into a pension for her. I wouldn't be comfortable locking away money for her retirement if it left us struggling with bills or an unexpected expense now.

A modest regular payment, or an occasional gift from a relative, may be more realistic than using the full £2,880 every year. I'd choose an amount that fits our budget rather than stretch to £240 a month just to use the allowance.

I can see the appeal most clearly where a family already has accessible savings and wants a separate, genuinely long-term gift. I would be less persuaded if the same money was likely to be needed for childcare, housing or education.

The trade-offs I would take seriously

The biggest drawback, for me, is giving up flexibility when I can't yet know what her life will look like. A change in family circumstances wouldn't ordinarily unlock the pension, so this isn't money she could normally use for university, a first home, a wedding or an emergency in her twenties, however important those things might become.

The second is how much the rules could change before she retires. The tax relief available now is useful, but I can't know what tax she'll pay on withdrawals or how old she'll need to be to access the pension.

Third, a SIPP requires investment decisions. Choosing a provider is only the beginning. Leaving every contribution uninvested, buying expensive funds without understanding them or concentrating the whole pension in a fashionable share could undermine the original idea.

Finally, the account stops being mine to manage at 18. She can change investments, move provider and decide how to contribute, even though she cannot normally withdraw the pension. I would want to help her understand the account, rather than simply hand over a login.

Choosing investments, not just an account

I would start with diversification, costs and how much investment risk I could accept on her behalf. A broad investment fund can spread money across many companies or assets; a handful of individual shares does not offer the same spread.

A long timeframe may make growth investments worth considering, but it does not make every high-risk investment sensible. The account should reflect an investment approach I can explain, including what I would do during a large market fall.

Fund charges, platform fees and dealing charges all reduce the amount left invested. Regular investing can simplify the process, but I would still check that each payment actually purchases the intended investment and that the account has enough cash to meet any fees.

Our guide to choosing SIPP investments explains how to compare funds, spread investments and assess charges.

Taking control, accessing the money and moving provider

What happens when my child turns 18?

Control normally passes to the child, and the pension continues as an adult pension rather than paying out. The provider may need updated identification, contact details, declarations and login arrangements. Adult charges may replace junior concessions.

The child can usually choose investments, make contributions and arrange a pension transfer. They should check any continuing parental account access with the provider rather than assuming it carries on automatically.

Before she takes over at 18, I'd want to go through the account with her: what she owns, how it's invested, what she's paying in fees and why she can't withdraw it yet.

When and how can the money be withdrawn?

The normal minimum pension age rises from 55 to 57 on 6 April 2028 under section 10 of the Finance Act 2022. Opening a Junior SIPP now does not lock a baby into access at 55. Nor would I assume the law will still say 57 when my daughter reaches her fifties.

Once eligible, the adult account holder contacts their pension provider to arrange benefits. Depending on the provider and rules then in force, choices can include leaving money invested and taking drawdown, taking lump sums, or buying an annuity that pays an income. They do not have to withdraw simply because they reach the minimum age.

Under current rules, up to 25% can normally be taken tax-free, subject to the person's remaining lump sum allowance, generally £268,275 across their pensions unless protected allowances apply. The remainder is usually taxable income when withdrawn. HMRC explains the lump sum allowance.

There are limited exceptions for circumstances such as qualifying ill health. Ordinary financial hardship or wanting a house deposit does not create an early-access right. Someone promising to unlock a child's pension early should be treated with extreme caution.

How do I transfer a Junior SIPP?

A Junior SIPP can normally move to another suitable pension for the same child. The sensible starting point is the receiving provider: check it accepts the existing pension and investments, then complete its transfer application as the authorised parent or guardian. Once the child is an adult, the instruction is theirs.

I would compare the old and new charges, investment choices, exit costs and any guarantees or protected benefits before authorising the transfer. The receiving provider then contacts the existing provider. This is a pension-to-pension transfer, not a withdrawal to the family's bank account.

A cash transfer sells investments within the old pension and moves the proceeds directly to the new pension. The money can be out of the market during the process. An in-specie transfer, also called re-registration, moves supported investments without selling them, but the receiving provider must accept the holdings and trading may be restricted while they move.

Fidelity's Junior SIPP transfer guidance explains both routes. It indicates around 10 working days for a cash transfer where the other provider responds promptly and uses the relevant paperless system, but up to 10 weeks or more in other cases. Those are Fidelity's estimates, not a universal transfer deadline.

HL's child pension transfer guidance also emphasises checking valuable benefits and exit fees first. I would keep contribution records from both providers, check for tax relief still due to the old account and confirm whether regular payments need to be restarted.

A recognised pension transfer does not itself use the child's annual contribution limit and does not earn a second round of tax relief. New cash contributions during the same tax year still need to be counted together. Our pension transfer guide explains the broader checks.

Can I move my own pension or a Junior ISA into it?

I cannot simply transfer part of my own SIPP into my daughter's SIPP. The pensions belong to different people. I can make a cash contribution from money I own outside my pension, subject to her eligibility and limits. Withdrawing from my own pension first would be a separate decision with its own tax consequences.

A Junior ISA also cannot be directly transferred into a Junior SIPP as a pension transfer. It is normally inaccessible until 18. Once an adult, the child could choose to use accessible ISA money to make pension contributions, subject to the pension rules then applying.

Similarly, one child's Junior SIPP cannot simply be reassigned to a sibling. Paying into the account is a gift to that particular child.

Gifts and changes in family circumstances

Can a Junior SIPP help with inheritance-tax planning?

Contributions can form part of lifetime gifting, but I would not describe them as automatically inheritance-tax-free. The usual gifting rules apply to the person making the gift.

HMRC's guidance on gifts explains the £3,000 annual inheritance-tax exemption. It is a total across the donor's qualifying gifts, not an extra £3,000 for every grandchild. A £2,880 cash contribution may fit within that exemption if it has not already been used elsewhere.

Regular gifts from surplus income can qualify for a different exemption where the conditions are met, including maintaining the donor's normal standard of living. Other gifts may be subject to the seven-year rule. Records of amounts, dates and the source of funds matter.

The child's pension tax relief and the donor's inheritance-tax position are separate questions. A Junior SIPP contribution can be eligible for the former without necessarily being exempt from the latter. Larger or more complicated family gifts are an area where I would take advice.

What if we move abroad?

Moving overseas does not mean the pension must automatically be cashed in, but it can change whether further contributions qualify for UK relief and whether the provider accepts them.

Fidelity notes that some former UK residents can remain eligible under the “relevant UK individual” rules for a limited period, depending on their earlier residence and scheme membership. That is not a blanket entitlement for every child abroad.

I would tell the provider about a move and check both UK rules and the new country's tax treatment before continuing payments. A UK pension's tax treatment does not necessarily carry over unchanged to another country.

What if we stop contributing?

The existing pension can normally stay invested without further payments. Charges continue, and its value will still move with the investments.

That is one reason I do not see the full annual maximum as the only worthwhile option. An affordable contribution can be reviewed as family circumstances change. Stopping payments is different from withdrawing the money already committed.

Opening a Junior SIPP

I would first decide how much I could genuinely set aside for retirement rather than earlier needs. Then I would compare junior-specific terms, check the provider on the FCA Financial Services Register, and use the provider's official application route.

The application normally needs details for the child and parent or guardian, identity and relationship checks, and information about the bank account funding contributions. Requirements differ: older children may need to make declarations themselves, and third-party payments may require separate forms.

After opening, I would choose the investments, confirm the contribution schedule, check tax relief when it arrives and keep a record of contributions from relatives. I would also set a reminder to review fees, contact details and the handover arrangements as she approaches 18.

My conclusion as a parent

The part of Junior SIPPs that interests me most is the chance to give my daughter an early start without needing a huge initial sum. The part that makes me pause is that she may need my help much sooner than retirement.

Before committing anything to her pension, I'd want enough money available for our own unexpected costs and for help she might need with education or a first home. If we could afford to save for her retirement as well, that's where I'd consider a Junior SIPP.

I'm glad that Instagram post sent me down this particular rabbit hole, even if it wasn't quite the introduction to Junior SIPPs I'd expected! The more I read, the more I could see the appeal of giving her an early start, provided I wasn't tying up money that would be more useful to her along the way. That's the balance I'd want to get right, rather than chasing the largest possible retirement figure.

Sources and calculation notes

Rules and provider charges checked on 2 November 2026 for the 2026/27 tax year. The primary sources are linked beside the relevant claims: HMRC for tax relief, Junior ISAs, gifts and lump sum allowances; UK legislation for the minimum pension age; MoneyHelper for pension mechanics; and Fidelity, AJ Bell and Hargreaves Lansdown for their own account terms and charges.

The £50-a-month figures are financial modelling calculations by SIPP Calculator using the assumptions stated above, not observations of real Junior SIPP account performance. This is my research and general information, not an individual recommendation.