More than six in 10 (61%) parents are delaying retirement as a result of paying school fees, according to new research from School Fee Plan.
The research found that for almost half (49%) of independent school parents the delay to their retirement date is five years or less. However, 4% admitted that the cost of paying school fees means they will never be able to stop working completely.
The study, which explored the financial and lifestyle sacrifices parents are making to pay independent school fees, revealed a quarter (25%) of parents take fewer and cheaper holidays, while a slightly higher percentage (28%) say they eat out less.
One in three (29%) are working extra hours, while nearly a fifth (17%) have gone into debt.
The introduction of VAT on school fees in January last year has intensified the pressure, with 17% saying they have taken on extra work or a second job as a result, while 15% have consulted financial advisers about selling investments.
School Fee Plan said the higher fees are also leading to decisions about keeping children at independent school, with some parents saying they will consider taking some but not all of their children out of school.
The research showed 12% of parents plan to take children out of private school, with a further 27% thinking about doing so.
However, nearly half (47%) of them say at least one child will continue at independent school, with GCSEs and A-Levels the main reason for doing so.
The total amount lent through Premium Credit’s School Fee Plan last year is around 9% higher than in 2023, however the average amount of funding is now around £24,288 which is 12% higher than 2024 and 24% higher than in 2023.
Steward Ward, director education sector & head of School Fee Plan, Premium Credit, said: “Parents are clearly willing to make financial and lifestyle sacrifices in order to pay independent school fees as demonstrated by the impact on retirement plans.
“The impact of the VAT introduced last year is further concentrating minds and highlighting the need for ways to improve cashflow and such as switching to smaller, more convenient payments.”
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