CTFs 'offer financial assurance'

Monday, June 29th 2009

Child Trust Funds (CTF) may be the best way to ensure a generation of children and parents are not left in debt in their old age, it has been claimed.

Setting aside money each year in a CTF might be the only way for parents to ensure they are not forced to raid their own pension funds to help children struggling to cope with high education and property costs, according to the Children's Mutual.

Chief executive of The Children's Mutual David White commented: "The only way we can turn this whole situation around is … to have people arriving at adulthood with financial capabilities.

"[Then] they can study without being left with debts, can afford deposits on houses in their twenties and can join pension schemes in their thirties."

Recent research from Saga Savings showed 20 per cent of UK grandparents are investing in CTFs, setting aside more than £400 annually to generate an average of £10,000 for grandchildren turning 18.