UK parents are increasingly opening pension accounts for infants and toddlers, locking money away until the children reach 57 or later to harness decades of compound growth.

Richard and Caitlin Brain, who live in Swansea, contribute £50 monthly to pension accounts for each of their two children, aged 20 months and five months respectively. The eldest will not access the funds until 2082. Richard, 30, works for an investment firm and earns less than £90,000 annually. Caitlin, 28, is currently on maternity leave from her local council job.

The couple also fund Junior ISA savings accounts with £60 per child each month, which the children can access at 18. Combined, they invest £220 monthly in their children's long-term accounts while contributing £200 to their own pensions and savings. Richard says the household budget reflects these priorities: "We don't eat out as often as we used to, which as foodies is a pain. And we don't go as big for one another on birthdays and Christmas."

Junior self-invested personal pensions (SIPPs) allow parents to contribute up to £2,880 annually, with the UK government adding £720 in tax relief to reach £3,600. Industry figures show demand is accelerating. Hargreaves Lansdown reported two and a half times as many accounts opened in the 12 months to April 2026 compared to the prior year. Fidelity said account numbers more than tripled since December 2023.

Jemma Slingo, a pensions specialist at Fidelity, outlined the mathematics: a parent paying £50 monthly from birth would contribute £10,800 over 18 years including tax relief. That pot could grow to approximately £135,000 by retirement.

Hugo Thompson, 15, from Manchester, supports the approach. His parents, who work in finance, have paid the maximum into his Junior SIPP for ten years. Hugo said the fund "will help" him retire earlier than state pension age and means he "won't have to put quite so much of my own money in."

Hugo's mother Annabel, also in finance, noted a condition: "Junior SIPPs should only be considered once you feel you have enough money of your own."

The practice is not confined to the UK. In July 2024, US President Donald Trump launched Trump Accounts, allowing families and employers to contribute up to $5,000 annually per child. Unlike UK pensions, funds become accessible at 18, though early withdrawals before age 59 and a half incur taxes and a possible 10% penalty. Wally Luckeydoo, a personal finance teacher in Tennessee, opened Trump Accounts for his children aged four and three, describing it as giving them "a financial head start" after his own experience with student debt.