Some parents in the UK are starting to save money for their children's retirement when their kids are still babies. For example, Richard and Caitlin Brain from Wales are putting £50 a month into pension accounts for their two children, who are only five months and 20 months old. Under current rules, the children will not be able to touch this money until they turn 57 years old.
In the UK, these long-term investment accounts are known as Junior SIPPs, or personal pensions for children. Parents can contribute up to £2,880 each year, and the government adds £720 in tax relief to reach a total of £3,600. Financial experts explain that starting so early gives money decades to grow through compounding, where saved money earns returns that generate further earnings over time. Paying £50 a month from birth could grow into a pot of around £135,000 by retirement.
Investment companies report a sharp rise in popularity for these child pensions. One provider, Hargreaves Lansdown, opened two and a half times as many child pension accounts in the year leading up to April 2026 compared to the previous year. However, preparing for the far-off future requires careful budgeting today. The Brain family say they have had to live more frugally, eating out less often and buying smaller gifts for each other on birthdays and Christmas.
Similar long-term savings schemes are gaining attention in other countries too. In July 2026, the US launched a new retirement investment option called Trump Accounts for children, allowing contributions of up to $5,000 a year per child. Parents like Wally Luckeydoo, a personal finance teacher in Tennessee who opened accounts for his two young children, say these savings give kids a financial head start and build long-term security for the family.