How to surprise your Grandchildren!

Photo credit: Nikoline Arns

There was an interesting article in the Sunday Times on the 20th January 2019.

I have extracted some of the points from the article below:

When a teenager was invited out for a meal by his Grandparents last week, he assumed it was to celebrate his 18th birthday. So he was flabbergasted to be told — even before the drinks had been ordered — that they had saved £118,000 for him in a pension.

“I was amazed.  I know what pensions are but they are not something I had ever thought about before,” said the teenager, who prefers not to be named.

His Grandad had taken a keen interest in finance for many years and decided to set up a retirement fund for him when he was born, paying in a regular sum.

£240 a month was paid in to the pension, so a total of £51,840 was paid in and the government topped this up by £12,960 through tax relief. With their first Grandchild’s 18th birthday approaching, they discovered his pot had grown to £118,000.

Children’s pensions can be opened with a monthly contribution of as little as £25 a month or a lump sum from any adult. The maximum contribution is £2,880 a year, which grows to £3,600 with the government top-up.

Pensions are a long term investment, and whilst this lucky teenager will not be able to access his pension until age 55 (under current legislation), it does show the benefit of long term investments.

If you are interested in contributing to a pension or other tax-efficient long term investments for a child or grandchild please do not hesitate to contact the team at Ward Williams Financial Services Ltd on 01932 830664 or by email on

About the author

Cliff, Director of Ward Williams Financial Services Ltd, has nearly 30 years experience in the Financial Services Industry with a variety of institutions including a major Private bank. He established WWFS in 2003 and is qualified to Diploma level. Cliff has advised numerous clients on all aspects of Financial Planning including Wills and Estate Planning.  He has a deep understanding of the need to plan wisely in this ever-changing world. His interest and enjoyment, however, still comes from meeting with clients and helping them put the financial side of their lives in better order. Cliff has lived in the Weybridge area for over 25 years and is married with two grown-up children. A keen sportsman, he loves playing cricket, hockey and golf – but these days probably spends more time spectating!