Education Savings Plan
Most parents agree that a good education is key to a child's successful future. Starting early with a regular savings plan will help to provide greater choice in the type of education your child receives. With education costs rising consistently at almost double the national inflation rate, saving for education has never been more important. The KeyInvest Life Events Bond helps take the worry out of education savings. With significant tax benefits available and the flexibility to make changes as your circumstances change, makes the Life Events Bond the preferred choice for an increasing number of Australians.
Craig and Jo want the option to send their two year old child, Ava, to a Private School in 10 years time. They have picked a school that has fees of $10,000 pa. They start with $5,000 up front and contribute $250 pm increasing the regular savings amount by 3% each year to allow for inflation. Based on the fund earning 5% pa, they would have enough to cover the school fees for 5 years of high school with just over $9,000 left to contribute to Uni fees or Craig and Jo can continue to contribute monthly towards a family holiday or to supplement their retirement savings.
Calculate your savings requirements using our Life Events Calculator.
- 5% pa earning rate is compounded monthly and is after tax and fees
- For the purpose of this calculation, regular monthly payments are accumulated and added at the beginning of each month and continue after withdrawals commence in year 10 until all children complete high school in year 15
- Regular payments indexed by 3% at the beginning of each policy year
- The $10,000 education cost is indexed by an assumed inflation rate of 3.0% pa. For example, in year 11 when the funds are required, the amount withdrawn to cover education costs is actually $13,439
- Withdrawals to pay for education funds are made at the beginning of the year they are due