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    • Home • Advice • Common questions

    Can one make an initial lump sum of £500 followed by a regular monthly amount of £25?

    28 May 2021

    Question by Garrie

    My mother would like to open a pension for her daughter/my sister who is 53. My mother would like to make an initial lump sum of £500 followed by a regular monthly payment of £25. My questions are: 1. Is this possible? 2. Do you know which companies may offer this? 3. What questions we should be asking of these companies?

    Answered by

    Hi Garrie,

    Thanks for your question. Yes, this is possible. Any third party can make payments into another persons pension subject to a maximum of £3,600 per year including tax relief. All major pension providers offer third party payments. In terms of what to ask, you just need to make sure that you understand the costs and the risk that you are taking in the particular fund that she chooses. You can look at the Boring Money Best Buys here https://www.boringmoney.co.uk/pensions/pensions/

    Regards
    Rachel

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.