Saving virgins advised to start early

Children could start saving for a pension from birth, a company has suggested.

Virgin Money has noted that with more young people having difficulty buying property when they seek to move out, that savings can be started as soon as possible - including pension schemes.

The company calculates that if the average cost of gifts is invested at the child's birth and child benefit added to the scheme each month, the resulting pension could reach £618,000 upon retirement.

Jason Wyer-Smith of Virgin Money said: "The thought of saving for a pension can fill a young person with dread so it's great to be able to get your kids off to a flying start when they're still in nappies!"

While a pension scheme for children is slightly unusual, many financial advisers advocate children saving from as young an age as possible, both to maximise return and to get young children into the savings habit.

To explore all the avenues for child savings, from ISAs to trust funds, please click on our free brochures page.