June 2021
R21 Employee Benefits
R21 Employee Benefits
In a recent Businesstech article, Old Mutual group’s data shows that if your child starts Grade R in 2020, with education inflation of 9%, you can expect to pay around R1.6 million for their public schooling up to matric and a three-year university qualification. By comparison, if you choose private schools and university, these costs double to R3.7 million.
“ “Education is the most powerful weapon which you can use to change the world” – Nelson Mandela. ”
In a recent Businesstech article, Old Mutual group’s data shows that if your child starts Grade R in 2020, with education inflation of 9%, you can expect to pay around R1.6 million for their public schooling up to matric and a three-year university qualification. By comparison, if you choose private schools and university, these costs double to R3.7 million.
Although the 2021 Education inflation recorded its lowest annual rate of 4.1% in thirty years, the costs are still outpacing inflation year on year. High education costs can put pressure on parents’ budget, and the death of a parent just burdens the surviving parent or legal guardian further.
In the past parents saved for their children’s tertiary education in restrictive Education policies, and many lost those savings because their children elected not to study at a registered institution.
The modern options are less limiting, and provide parents with the following choices:
Education insurance at the death of a parent
This is financial protection against the high costs of education in the event of the death or disability of a parent.
Type 1
Type 2
A financial advisor will be able to assist you to determine the amount of cover required to meet your children’s educational needs, and the best way to set up the payment of the policy proceeds (cash payment to surviving parent or guardian, trust fund etc.)
This is investment planning to fund for tertiary or any other education needs of your children. It will be in the form of a monthly contribution made towards an investment vehicle (e.g. unit trusts, bank account, tax-free savings plan).
You will need guidance from your financial advisor to assist you with the best option for your specific circumstances, as not all the investment products are equal. You need to consider aspects like:
To find out more, contact your PSG Wealth R21 account manager and/or financial adviser.
R21 Employee Benefits https://www.psg.co.za/r21employeebenefitsirene
Tel: +27 (86) 166 2346 Pretoria | 119 Sovereign Drive, Route 21 Corporate Park, Irene, Pretoria, 0157
Stellenbosch | 2 Moore Stephens, 24 Techno Drive, Techno Park, Stellenbosch, 7600
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