We're saving £100 a month into pensions for our toddler and baby - here's why

Parents in the UK are opening retirement funds for their children to save for their future.

A growing number of parents are paying into these accounts, with some setting up pensions and ISAs for their toddlers and babies as early as birth.

Paying into their pensions means we can play a part in their future far beyond our own years. And the money has decades to grow.

Richard's financial knowledge is explained by the fact he works for an investment firm. Caitlin is currently on maternity leave from her job working for the local council.

He earns less than £90,000 a year, while she currently doesn't have an income as she has not yet returned to work after her statutory maternity pay of £194 a week ended.

In addition to their children's pensions, Richard and Caitlin have also set up Junior ISA savings accounts for them, and pay in £60 a month per child - money the kids will be able to access when they turn 18.

The couple believe this is the best of both worlds – the ISAs could help their children with university costs, starting a business or a house deposit, while the pensions are intended to provide financial security much later in life.

Paying a combined £220 a month into their kids' funds, in addition to £200 into their own private pensions and savings, the couple say they must live more frugally than in the past.