Can under 18's start a private pension and benefit from tax free contributions?

H

Horatio

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One of my children just started work.

Under 18 and we're encouraging savings to benefit from compounding. We're trying to Instill the habit.

We are debating the optimum bank, cu, an post savings accounts then it occurred to me that perhaps starting a pension immediately and benefiting from tax free contributions straight away.

Is this doable for u18's?
Any advice or experiences are appreciated.
 
Anything useful here?

Pension - PRSA for a Child

Wanted to find out if anyone knew if its possible to open a PRSA pension for a child (newborn)? I get that there would be no tax relief as the child does not have earnings. But you would get around deemed disposal, its a good place to stick the €3k small gift exemption each year and even when...
www.askaboutmoney.com
At such a young age they might be better off saving towards accommodation/a property at this stage?
 
Yep fair enough. I would like to expose to both compounding and tax free contributions.

A little bit of both maybe...

I'll read up that link. Thank you.
 
If they opened the pension at age 18, they could claim tax relief on contributions made up to 31st. October of the opening year from their previous year's earnings. Effectively they can gain tax relief from age 17.
 
Horatio said:
Under 18 and we're encouraging savings to benefit from compounding. We're trying to Instill the habit.
Click to expand...

Good idea.

But compounding works outside pension schemes as well.

Their first priority will be to buy a house. They should not lock away their money for 40 years.

I think that it's important for everyone to understand the ups and downs of the stockmarket.

Get them to buy shares in a well known company - and they will learn a lot from it.

Brendan
 
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