Save for your family's future

While you can now leave your pension to be inherited by family members, potentially tax free, some are wanting to help out their loved ones in another way.

Invest for your spouse

A great way to maximise pension savings is to save for your spouse. If they are unemployed, you can still save £2,880 a year into a pension for them, on which they will receive £720 tax relief. Their annual allowance is based on their earnings so if they are working you may be able to save more than £2,880 (before tax relief).

Invest for your child(ren) and/or grandchild(ren)

If your child(ren) and/or grandchild(ren) are over 18, why not open a pension through Chelsea? They will simply need to complete an online questionnaire and our dedicated pensions administrator will pre-populate the majority of the paperwork ready for them to sign. You can then invest a lump sum and/or regularly invest into a pension on their behalf. They will automatically receive 20% tax relief, but could claim more if they are a higher rate or additional rate tax payer. 

It is often difficult to start saving in your 20s and 30s, with university fees, buying a house and, for most of them, just generally having fun, so why not give your children or grandchildren the head start they need?

There are, with all pensions, a few things to bear in mind, particularly as the investment would not be for you. Read on to find out more.

Relevant earnings, annual allowance and tax relief

When paying into a scheme for someone else you need to remember that this will affect their annual allowance and tax relief, and the amount that can be paid in is dependent on their relevant earnings, not yours.

For example, if you are a higher rate tax payer, but your daughter is currently unemployed, the most she can invest into her pension (from third parties and personal contributions), and receive 20% tax relief on, is £2,880. By investing the £2,880, you do not lose this from your annual allowance.

See a breakdown of tax relief here:

What we can offer

• 0% set-up charge
• 0% initial charge on funds
• Access to over 2,500 funds
• Fund research 
• Access to VT Chelsea Managed Funds
• Competitive service and platform charges
• Free transfers in – we can help with transfer out charges if you are moving to us
• Free telephone dealing
• Free switching online, by post and on the telephone
• Twice-yearly statement with unbiased and expert research commentary
• Dedicated Chelsea pensions administrator

*The Chelsea pension is not a qualifying scheme for automatic enrolment and there is a £5,000 initial contribution to open a pension (this can be from a transfer and/or lump sum payment)