Industry News
Parents sacrifice pension to cover school costs
Posted on 18th September 2007
Nearly a fifth of parents whose children attend private school sacrifice their own or their partner's pension to pay for school fees, it has been claimed.
JPMorgan Asset Management (JPMAM) conducted research among 215 parents funding their child's education and found 18 per cent are sacrificing part of their pension fund while 25 per cent are dipping into savings and investments to cover costs.
It discovered only eight per cent of parents had savings specifically for their children's education.
James Saunders Watson, head of sales and marketing for investment trusts at JPMAM, said the findings were "concerning".
He said: "The costs of private education can eat into standby savings which some parents may have put aside for a rainy day to use on other financial commitments such as saving for a family holiday or funds for unexpected costs or emergencies."
Fees vary from school to school but the Independent Schools Council says the average fees for a member school are £3,391 a term.