How to make your child a tax-free millionaire by age 37

Exclusive research for MoneyWeek reveals how funding an ISA and a pension for your child until age 18 could build up a seven-figure sum by the time they reach 37. We look at how you can make your child a tax-free millionaire.

Two children wearing suits and holding money
(Image credit: © Getty images)

If you’re looking to save for your children, making use of tax-efficient savings such as ISAs and pension could see them enjoy life as millionaires before they hit age 40.

Diligently saving for your child from when they’re a newborn baby until age 18, while taking advantage of generous tax breaks, could turn your child into a tax-free millionaire before they hit 40.

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Junior ISAPensionTotal outlayPension top-up
Maximum annual contribution£9,000£2,880£11,880£720
Contributions over 18 years£162,000£51,840£213,840£12,960
Swipe to scroll horizontally
AgeJunior ISA subscriptionJISA value 12 months laterChild Sipp gross contributionChild Sipp value 12 months laterTOTAL VALUE
0£9,000.00£9,460.46£3,600.00£3,784.18£13,244.64
1£9,000.00£19,404.93£3,600.00£7,761.97£27,166.90
2£9,000.00£29,858.18£3,600.00£11,943.27£41,801.45
3£9,000.00£40,846.24£3,600.00£16,338.49£57,184.73
4£9,000.00£52,396.47£3,600.00£20,958.59£73,355.05
5£9,000.00£64,537.63£3,600.00£25,815.05£90,352.68
6£9,000.00£77,299.95£3,600.00£30,919.98£108,219.93
7£9,000.00£90,715.22£3,600.00£36,286.09£127,001.31
8£9,000.00£104,816.84£3,600.00£41,926.74£146,743.57
9£9,000.00£119,639.92£3,600.00£47,855.97£167,495.89
10£9,000.00£135,221.39£3,600.00£54,088.55£189,309.94
11£9,000.00£151,600.03£3,600.00£60,640.01£212,240.04
12£9,000.00£168,816.63£3,600.00£67,526.65£236,343.28
13£9,000.00£186,914.07£3,600.00£74,765.63£261,679.69
14£9,000.00£205,937.40£3,600.00£82,374.96£288,312.36
15£9,000.00£225,934.01£3,600.00£90,373.60£316,307.61
16£9,000.00£246,953.68£3,600.00£98,781.47£345,735.15
17£9,000.00£269,048.75£3,600.00£107,619.50£376,668.25
18Row 19 - Cell 1 £282,813.80Row 19 - Cell 3 £113,125.52£395,939.31
19Row 20 - Cell 1 £297,283.09Row 20 - Cell 3 £118,913.23£416,196.32
20Row 21 - Cell 1 £312,492.65Row 21 - Cell 3 £124,997.06£437,489.71
21Row 22 - Cell 1 £328,480.37Row 22 - Cell 3 £131,392.15£459,872.52
22Row 23 - Cell 1 £345,286.05Row 23 - Cell 3 £138,114.42£483,400.47
23Row 24 - Cell 1 £362,951.54Row 24 - Cell 3 £145,180.62£508,132.16
24Row 25 - Cell 1 £381,520.83Row 25 - Cell 3 £152,608.33£534,129.16
25Row 26 - Cell 1 £401,040.16Row 26 - Cell 3 £160,416.06£561,456.22
26Row 27 - Cell 1 £421,558.13Row 27 - Cell 3 £168,623.25£590,181.39
27Row 28 - Cell 1 £443,125.85Row 28 - Cell 3 £177,250.34£620,376.19
28Row 29 - Cell 1 £465,797.01Row 29 - Cell 3 £186,318.80£652,115.81
29Row 30 - Cell 1 £489,628.07Row 30 - Cell 3 £195,851.23£685,479.29
30Row 31 - Cell 1 £514,678.37Row 31 - Cell 3 £205,871.35£720,549.72
31Row 32 - Cell 1 £541,010.29Row 32 - Cell 3 £216,404.12£757,414.41
32Row 33 - Cell 1 £568,689.40Row 33 - Cell 3 £227,475.76£796,165.16
33Row 34 - Cell 1 £597,784.63Row 34 - Cell 3 £239,113.85£836,898.49
34Row 35 - Cell 1 £628,368.43Row 35 - Cell 3 £251,347.37£879,715.80
35Row 36 - Cell 1 £660,516.95Row 36 - Cell 3 £264,206.78£924,723.73
36Row 37 - Cell 1 £694,310.25Row 37 - Cell 3 £277,724.10£972,034.35
37Row 38 - Cell 1 £729,832.48Row 38 - Cell 3 £291,932.99£1,021,765.47
38Row 39 - Cell 1 £767,172.10Row 39 - Cell 3 £306,868.84£1,074,040.93
39Row 40 - Cell 1 £806,422.08Row 40 - Cell 3 £322,568.83£1,128,990.91
40Row 41 - Cell 1 £847,680.16Row 41 - Cell 3 £339,072.06£1,186,752.22
41Row 42 - Cell 1 £891,049.09Row 42 - Cell 3 £356,419.63£1,247,468.72
42Row 43 - Cell 1 £936,636.85Row 43 - Cell 3 £374,654.74£1,311,291.59
43Row 44 - Cell 1 £984,556.97Row 44 - Cell 3 £393,822.79£1,378,379.75
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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.