Pensions Suffer To Fund Education

Pensions Suffer To Fund Education

New research from MetLife Europe Limited has shown, the rising cost of education is taking a collective £7.3bn bite out of parents’ annual saving for their own retirement.  The research revealed that about 23 per cent of adults felt the costs of funding education was having a negative impact on their ability to save into a pension.  The findings also revealed that the average amount being diverted from pensions into paying for education is about £57 a month, but some people are cutting back on pension saving by as much as £300 a month.

Our view

The desire to pay for things for our children is ever greater.  Pressure is on parents to fund private education sometimes, but in the main it is university fees that catch out many more parents.  

Simple financial planning on the day that your children are born will offer you a fantastic opportunity to save over a longer period so that education costs do not bite.

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