Latest news with #MikeAmbery
Telegraph
03-05-2025
- Business
- Telegraph
Britain's richest children already have six-figure savings
Hundreds of children already have six-figure sums in savings accounts, new data shows. Parents can stash up to £9,000 a year into Junior Individual Savings Accounts (Jisas), which can be invested in stocks and shares or cash. More than two million children have up to £25,000 saved in a Jisa, according to figures obtained via a Freedom of Information request lodged by savings company Standard Life. Around 2,400 are sitting on £75,000 to £100,000. The average Jisa has a value of £4,370; however, figures reveal there are 400 children with nest eggs worth more than £100,000. Jisa returns are tax-free, and the accounts are available to anyone in the UK under the age of 18. Introduced in 2011 as a replacement for child trust funds, they are designed to encourage long-term saving by locking away cash until the child reaches adulthood. The accounts have become more popular among parents looking to pay their children's future university tuition fees, or to help them save towards a house deposit. Investment experts are now calling on families to consider putting some money into child pensions. Though more niche, child pensions have also emerged as a tax-efficient way to save for adulthood. They are government-backed savings accounts similar to Lifetime Isas, rewarding savers with a 20pc top-up. Mike Ambery, of Standard Life, said: 'Jisas and child pensions are both great ways for families to save for their children's future. 'Jisas provide a tax-efficient way to save for adulthood, while children's pensions are great for those playing the long game as they will benefit from decades of compound investment growth.' Assuming a parent paid the maximum £2,800 into a child pension every year, a child could have a pension pot of £75,200 by the time they entered the workforce, Standard Life said. Child pension savings cannot be accessed until retirement age, however. Mr Ambery said: 'As children gain access to their Jisa funds at 18, it's important for parents to ensure their children understand the value of saving and making informed financial decisions before committing a vast amount of cash. 'Prioritising financial education from an early age can help young people manage these funds wisely when the time comes. 'For those wanting to take a longer-term approach, a child pension offers a structured way to build wealth over time, potentially more than doubling the eventual value of the child's workplace pension pot.'
The Independent
01-04-2025
- Business
- The Independent
Deadline looming to take action which could boost state pension entitlement
People have just days left to take action to plug gaps going back to 2006 which could boost their state pension entitlement. A deadline of April 5 has been set for people to check their national insurance (NI) record and fill any gaps stretching as far back as April 6 2006. Figures from HM Revenue and Customs (HMRC) show 83,000 people have collectively topped up more than 200,000 years, since April 2024. More than half (59%) of the years topped up by customers are from 2017 onwards and the average online top-up payment is £1,765. The largest weekly state pension increase made has been £113.76. From April 6 2025, people will only be able to make voluntary NI contributions for the previous six tax years, in line with normal time limits. However, people who are struggling to get through on helplines can complete a callback request form online to ask the Department for Work and Pensions (DWP) to discuss paying voluntary NI contributions. As long as the request has been submitted by April 5, people will still be able to pay after the deadline has passed. A Government spokesperson said: 'Our new online tool will mean that people are able to make top-up payments after the April 5 deadline, provided they complete the callback request form ahead of that date. 'This will enable us to ensure no one misses out, and to suitably manage demand as the deadline approaches.' People can go to to see how much state pension they could get and if they could increase it. The callback request form for those who are struggling to contact the DWP is at Whether it is worth someone topping up will depend on individual circumstances. In general, people need to build up 35 years of NI contributions to get the full new state pension. People may also be able to receive credits if they are not paying NI and they can check whether they are entitled to do so at Mike Ambery, retirement savings director at Standard Life, part of Phoenix Group, said of the potential benefits of filling NI gaps: 'The amount you gain will depend on how long after state pension age you live, alongside other factors like any tax you pay after factoring in other sources of income. 'Despite the potential benefits, buying backdated voluntary contributions won't be right for everyone. It's very important to consider your own situation, as there could be many reasons why voluntary NI contributions wouldn't suit your circumstances, for example if you have sufficient time to make up the years without making voluntary contributions. 'There's almost no time left, and this is a big decision to make.'
