A simple way to give your children an extra £70,000 when they retire.
By ensuring their children are well-versed in financial matters, Britons could help their children retire £70,000 richer.
As people go about their daily lives, many begin to consider their own retirement, but by providing financial education to their children, the next generation could reap huge financial benefits.
According to a study by GoHenry, children could benefit greatly from financial education in a variety of ways, including better retirement prospects.
Those who were taught about money when they were young are more likely to be wealthy in retirement.
Adults who learned about money save 43 percent more per month in their pension plans than those who do not.
Over a 40-year working lifetime, the increase in the average pension pot for someone saving £149 per month compared to someone saving £104 per month would amount to £71,250.
To make up the difference, someone earning the national average would have to work more than two years longer.
According to GoHenry’s calculations, someone saving £45.58 per month into a pension pot at the age of 67 will have a final pension worth £71,250.
A saver who increased their monthly contribution to £104.02 would retire with a pension pot of £162,750, an increase of £91,500.
Someone would need to save £149.60 per month to reach a pension pot of £234,000 in order to retire.
The study also shows how financial education can affect a person’s future career prospects.
People who did not receive financial education as children are now more likely than the national average to be unemployed or earning less.
41% of those currently unemployed and looking for work did not receive any financial education, compared to 9% of those who did.
Nearly half of those who did not receive any financial education as a child earn £15,000 or less per year, which is less than half of the national average.
Adults who do not learn about money as children are less likely to save and are more likely to go into debt.
Over half (51%) of those who received financial education as a child have cash savings of up to £5,000 in an ISA or savings account, compared to less than a third (30%) of those who did not.
Some 40% of those who did not receive financial education claimed to have done so.
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