Junior SIPP Tax Relief Calculator
See how much the government's 25% bonus could grow to by retirement
Calculate the lifetime value of free government money
from the Government
25% added to every Junior SIPP contribution
Calculator Settings
What the Government's 25% Bonus Could Grow To
Grown over 62 years (age 5 to retirement at 67)
£104,344
That's
£348/month
in retirement income
Grown from only £3,900 in government tax relief
Assumes 6% annual growth (historical stock market average)
If you contribute the maximum £2,880/year, the government's 25% tax relief could grow to £250,425 by retirement.
That's £835/month in retirement income from the grown tax relief alone!
Key Takeaways
- Government adds 25% to every Junior SIPP contribution
- This happens automatically - even if you don't pay tax
- Calculations based on 6% annual growth (historical stock market average)
- The earlier you start, the more time for growth
- Junior SIPPs can only receive contributions until age 18
- Maximum contribution: £2,880 per year (gets £720 government bonus)
- Every year you wait reduces the total benefit
Ready to start building their future?
Download the Squids-In app to track Junior SIPP contributions and watch the government's free money grow
How Junior SIPP Tax Relief Works
You Contribute
You contribute to your child's Junior SIPP (up to £2,880 per year). This is called the "net contribution".
Government Adds 25%
The government automatically adds 25% tax relief. For example, £2,880 becomes £3,600 total (£720 free from the government).
Both Grow Tax-Free
Your contributions AND the government's bonus both grow tax-free until retirement at age 67. No income tax, no capital gains tax.
Important: This Calculator Shows Lifetime Value
Unlike the Future Builder calculator which projects to age 18, this calculator shows what the government's 25% bonus could grow to by retirement (age 67). This demonstrates the true power of compound growth over 50+ years.
Frequently Asked Questions
Do I need to pay tax to get the 25% government bonus?
No! The 25% tax relief is added automatically to Junior SIPP contributions, even if you (or your child) don't pay any tax. It's truly free money from the government.
When can my child access their Junior SIPP?
Junior SIPPs can only be accessed from the minimum pension age (currently 57, rising to 58). This is much later than Junior ISAs (age 18), but the government bonus and decades of compound growth make it incredibly valuable for retirement. Compare Junior ISA vs Junior SIPP.
What's the maximum contribution to a Junior SIPP?
You can contribute up to £2,880 per year (net). With the government's 25% tax relief, the total contribution becomes £3,600 per year. This is much lower than Junior ISAs (£9,000/year) but the tax relief bonus makes it extremely valuable.
How is the retirement income calculated?
We use the "4% rule" - a widely accepted guideline that suggests you can safely withdraw 4% of your pension pot each year in retirement. This provides a sustainable income while preserving capital. So a £300,000 pension pot would provide £12,000/year or £1,000/month.
Why does waiting cost so much?
Every year you wait means: (1) One less year of government contributions, and (2) Each year's contribution has less time to grow. With compound interest over 50+ years, even a 1-year delay can cost tens of thousands in lost growth. Starting early is crucial!
Related Tools & Articles
Future Builder Calculator
See what your child could have by age 18. Includes both Junior ISA and Junior SIPP options.
Try Calculator →How Junior SIPP Tax Relief Works
Complete guide to understanding the 25% government bonus on Junior SIPP contributions.
Read Article →What is a Junior SIPP?
Everything you need to know about Junior Self-Invested Personal Pensions for children.
Read Article →