Grandparents are increasingly taking on the financial burden and dipping into their life savings to pay their grandchildren’s school fees.
Research conducted by industry super fund Rest has discovered that almost one-third of grandparents are planning to draw down on their superannuation to pay school fees for their grandchildren.
Damian Hill,The Chief Executive of Rest, told the ABC, that he was surprised by the results of the research. The results were published late last year in its annual white paper The Journey Begins, which surveyed more than 1000 working Australians aged over 50.
The research found that 36 per cent of retirees want to leave their children a “significant inheritance”, while 29 per cent want to draw down on their super to pay school fees and 21 per cent planned to help their children pay for a deposit on a house.
“What comes through clearly is the desire of people approaching retirement to ease the financial burdens their adult children face today, especially buying a house and covering school fees,” Mr Hill said.
Education fund, The Australian Scholarships Group, has estimated that NSW parents alone can expect to pay upwards of $250,000 to cover the cost of a child’s private education.
Speaking with the ABC, the ASG chief executive John Velegrinis said grandparents had been increasingly contributing to school fees through their fund over the past five years.
“It’s not a new thing but it is increasing and we are seeing a much greater propensity for grandparents to take an active part in helping support the future educational outcomes for their grandchildren,” Mr Velegrinis said. “Grandparents do tell us that firstly that they are trying to help their children, they are adult kids who have lots of other things to cope with, they have mortgage stress, other stresses and grandparents are very desirous of helping.”
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