False Financial Assumptions

//False Financial Assumptions

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.

2015-07-15T10:20:37+00:00 July 15th, 2015|Categories: Just a simple northerner|