Pension and investment provider Aegon has launched a Junior SIPP to help advisers with intergenerational planning.

Aegon said it had launched the new product in response to demand for more generational wealth transfer products due to pensions being scheduled to come into the scope of inheritance tax from April 2027.

The Junior SIPP is free of platform charges until the child turns 18, when it will convert to a standard Aegon SIPP. Investment fund charges will apply.

Junior SIPPs enable 20% tax relief on contributions up to £2,880 per tax year as well as potential for long-term investment growth.

Anyone can put money into a Junior SIPP as long as it is within the annual contribution limit. The account must be in the name of a child under the age of 18, with the savings locked until the child reaches retirement age.

Stephen Crosbie, managing director of adviser platform at Aegon, said: “With upcoming inheritance tax implications for pensions, it’s vital to equip advisers with effective planning tools. This product is crafted to aid advisers in assisting their clients successfully navigate wealth transfer across generations.”

In the UK Aegon provides pension and investment solutions to over 3.5m customers and has over 3,000 employees. Aegon UK is part of the wider Aegon Group which headquartered in The Hague in the Netherlands.