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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.

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. Withdrawals from a pension product will not normally be possible until you reach age 55, and from a Junior SIPP until the child reaches 55.

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.

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 29 August 2018 
4. Financial Times 
5. 2019

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