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Having a baby later in life

Later-life parenthood has plenty of upsides, but you may need a financial health check.

Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Having a baby later in life

There are many joys to having children later in life, particularly if junior has been long-awaited. However, there’s no doubt that having children in your forties and beyond can disrupt even the best-laid financial plans. One moment you’re happily building your savings pot for the long-term, the next you’re planning for school and university fees. 

Your financial plan will need to be flexible enough to balance your short-term financial needs whilst ensuring you’re financially secure for the future. This article looks at some of the aspects to consider when managing your finances, allowing you to focus on your baby rather than worrying about the financial implications.

Reflect on your financial situation
Be honest about the extra costs
Consider the implications of a career break
Keep it flexible
Start building a nest egg for your children

Important information

The value of investments and the income from them can go down as well as up so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. The minimum age you or your child can normally access pension savings is currently 55, and is due to rise to 57 on 6 April 2028, unless you have a lower protected pension age.

It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly recommend that you seek advice from an authorised financial adviser.

Source:
1 Office of National Statistics: Conceptions in England and Wales: 2017 
2 Child Poverty Action Group: Cost of a child 2017
3 Property news on primelocation.com: 29 August 2018 
4. Financial Times 
5. Moneyadviceservice.org.uk: 2019

Other life moments

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Planning for your child’s university

University can help your children achieve their dreams, but it may come with a significant cost attached. We look at some of the ways you can prepare for the opportunity.

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Let's start your savings journey

Open an ISA

It’s quick and easy to open an ISA online. Just enter your details and then choose from a regular savings plan or a one-off payment.

Open a Junior ISA

Start saving for a child’s future by investing in a Stocks and Shares Junior ISA on their behalf.

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