JPMorgan: Parents sacrificing pensions for school fees

19 September 2007
Many parents are choosing to send their children to private schools by using their savings and investments according to a new report.

A survey conducted by JPMorgan Asset Management found that 18 per cent of parents "make sacrifices" to their pensions to finance private education.

The firm noted that 25 per cent of parents choose to take money from their existing savings and investments.

James Saunders Watson, head of sales and marketing for investment trusts at JPMorgan, said that it was "concerning" many parents are taking such steps to fund their child's education.

"What's also worrying is that 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," he remarked.

Recent research by Halifax revealed that private school fees have increased by 41 per cent during the last five years, to an average of £9,627 a year.

The company stated that school fees now amount to 32 per cent of average annual gross earnings, having risen from 27 per cent in 2002.

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