Financial services firms are already predicting children may not see the full benefit of child trust funds as research suggests three quarters of parents have never heard of them.
Research commissioned by Family Assurance suggests 75% of UK adults have never heard of the CTF initiative set for launch in April 2005, which should give all children born since 1st September 2002 a savings account worth between £250 and £500.
Moreover, the survey reveals only 8% of those questioned could correctly describe what a CTF is.
Over one third (34%) of 16-24 year olds questioned said they had heard of the CTF, compared with a UK average of 25%, whereas at least 12% could accurately describe the initiative.
And one in five of the over 55s (21%) said they had heard of the Child Trust Fund.IFAonline
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