Education Costs 'Hitting Pensions Savings'

Many people have been found to be cutting back on their pensions savings - in order to pay for their children's education.

A poll by researchers at YouGov, released today on behalf of MetLife, shows that 23 per cent of British adults are using money that would otherwise be put into retirement savings for school and university fees and extra-curricular classes. On average, the parents were found to be using £57 of their pension money each month for this reason.

The amount spent by parents whose children attend private, fee-paying schools was found to be highest. Just over half a million British children attend these establishments, at an average cost of £9,000 per year.

Moreover, education costs as a whole were found to have increased by 13.2 per cent last year according to government figures. This contrasts starkly with the overall annual inflation rate of 2.1 per cent.
Commenting on the research, Ed Gardner at MetLife said: "In the current economic climate, everyone's finances are under strain and it is understandable if people cut back.

"Paying for education is a vital investment in the future of our children, but it is worrying when that investment is being made at the expense of future retirement income."

YouGov polled 1,983 adults over the course of its research.