I recently became aware of some major mistaken assumptions the public make about financial issues. (Source Ipsos MORI and Kings College, London). Let me share some of them with you:
CHILDREN… What is the cost of raising a child to age 21. Average assumption is £50,000…..Reality is £229,000
NURSERY CARE… The cost of 25hrs of nursery care for a child under 2. Assumption is £200 per week…..Reality is £115 per week.
STUDENT DEBT… Today’s students leave university with debt (inclusive of tuition fees). The assumption is £21,000 in total……Reality is £44,000.
PENSION NEED… To enjoy a retirement income of £25,000 per year (inclusive of full state pension) a pension pot needs to be built. The assumption is £124,000 should do it….Reality is over £300,000.
HOUSE DEPOSIT… The public assume the average house deposit to get a mortgage is £20,000….Reality is £72,000.
It’s astounding how naive we can be.