Martin Lewis issues advice for pensioners who have grandchildren

Martin Lewis has issued a advice to state pensioners who have grandchildren. The financial guru shared his advice on Twitter, where the Money Saving Expert founder stated: "Did you know you can open a pension for your child (or grandchild)..." This advice was part of his latest newsletter for MSE, which landed on Tuesday night (February 4).

He explained: "Children can have pensions too! Almost anyone can save into a pension and get tax relief, even if they've little or no income. The minimum allowance is £3,600/yr (meaning it only costs you £2,880). This means even a newborn baby can get a pension."

"And indeed I know grandparents who open them for their grandchildren, liking the idea it'll trigger a memory of them in 50 years' time. The advantage of this is as the earlier you start, the more time it has to grow, so starting super young should be very valuable once your ickle ones are old 'uns like me. It's no surprise that more than a couple of kids of the parents in MSE Towers have pensions."

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"However, I'd caution to always first look after your own finances, then look at top children's savings and fill up a junior ISA, as they're shorter-term priorities. Yet if you're lucky enough to have enough to do that, then a pension for the children may be a good option."

One fan queried: "Can I open a savings accounts or pension plan for my Australian grandchildren, if so how do I go about it? " Meanwhile, another questioned the rationale behind such savings, typing: "Why would you? The time to save for a pension is when you're in the high tax bands. If saving money for kids it should be for their education or to get on the housing ladder.", reports Birmingham Live.

Additionally, another individual sought advice on personal contributions, asking: "Martin I'm paying into a pension for my son £100 pm. I'm retired but can I claim tax relief on my contributions?"

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