
The financial challenges facing younger generations are well-documented. The average age of a first-time buyer is now 33, and the average deposit they need is £34,000¹. Consequently, only 34% of 25-34 year olds now own a home, compared to 60% just 20 years ago². University students will graduate with an average debt of £44,000³.
The amount that can be invested for each child into a Junior ISA has increased to £4,128 for this tax year. An investment in a Junior ISA is locked in until the child is 18, at which point it is rolled over into a standard ISA. Investing regularly or through a lump sum can go a long way towards helping children get a head start, and could also help foster the savings habit. Gifting to children can also help older generations with their estate planning needs.
¹Halifax, July 2016
²Office for National Statistics, 2015
³Sutton Trust, April 2016
The value of an investment with St. James's Place is directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The favourable tax treatment given to Junior ISAs may not be maintained in the future as they are subject to changes in legislation.