Children’s College Education Savings Plan
‘A Saving plan specifically tailored for your children’s third level education’
Main features and benefits of this Plan
Why start a Children’s College Education Savings plan?
How much should I save?
The main benefit of saving for your children’s education is that you will have a nest egg stashed aside to pay for the ever-increasing third-level education costs. It is estimated that it takes close to €10000 per year to pay for a child’s third-level education. The average college course is 4 years so, roughly speaking, it can cost up to €40000 to put each child through college.
‘A recent study undertaken by Zurich in 2020 indicated that 41% of households got into debt as a consequence of their children going to college’
The key to preparing for your children college education;
Saving your monthly Children's Allowance
If you saved the children's allowance of €140 per month until your child's 18th birthday, you would have close to the €40000 saved.
Please see below the potential returns expected with saving the Children's allowance for one child and while also generating a modest 3.4% annual return on investment.
If you can't afford to save all of your full children's allowance or if you have no savings and your child is in his teenage years, it's never too late to start. Whatever you save for college education costs, you will be grateful for this pot of money when the time comes.
Fees and Charges
Where are my Savings Plan funds invested?
Your Savings plan is invested in Zurich's PRISMA range of Funds.
There are 6 choices within the PRISMA funds varying from low, medium to high risk. The choices are as follows
The PRISMA Multi-Asset Funds
PRISMA 2 – Classed as low risk
PRISMA 3 – Classed as low to medium
PRISMA 4 – Classed as a medium to high risk
PRISMA 5 – Classed as high risk
PRISMA Max - Classes as highest risk
You can, if you wish to invest a percentage into each PRISMA fund. For example; you can put 20% in each fund or put 100% in PRISMA 2 (Lowest risk).
Please see attached the PRISMA Brochure which gives a brief explanation of these funds.
What potential returns I should be expecting?
The Potential returns all depend on what PRISMA funds that you choose.
If you are a low-risk, conservative investor then PRISMA 2 is for you.
If you would like to take on more risk and potentially get more of a return on your money, then PRISMA 4, 5, and Max are the funds for you.
As you can appreciate, the lower the risk of the fund you choose, the smaller the potential returns will be and the higher the risk you take, the higher the potential return that could be earned. However high-risk funds can be volatile and may go up and down more frequently.
Please see below an illustration of the actual returns generated from the PRISMA funds since launch (2013 to January 2021);
Please see the attached brochure of the Performance Report of the PRISMA range since 2013.
Need help with your PRISMA Fund choice?
If you are struggling to make a decision as to what PRIMA funds to invest in, you can take a test below which will categories your tolerance to risk. The results will give you an indication of what funds you are most suited to (low, medium, or high). The test is 7 short multiple-choice questions.
Have I access to my savings?
The main purpose of Children’s Education Plans is that you put money aside for a long-term period (minimum 5 years or so) to cover the huge cost of third-level college education. If you plan to withdraw funds regularly, this plan is not for you. However, you can if you wish take part withdrawals from the plan. In the initial years of the plan, there may be a slight penalty on your funds if you do withdraw funds.
Steps in setting up this Savings Plan
1- Click on the 'Apply Now' button, fill in Zurich's application form and submit.
2- Accept a confirmation email from Zurich with your application form details.
3- Upload Proof of ID (passport/driver's License), Proof of Address (utility bill less than 3 months old) and Proof of PPS (payslip/any revenue documentation)
4- Transfer any lump sums by electronic transfer (EFT) into Zurich's Bank account (details are sent to you via email).
5- Start paying the monthly Premiums.
All Savings plan documentation is sent in the post within a couple of weeks to you.
You will receive your Login details to Zurich's savings plan online portal also in the post.
Here you can,
An Annual Benefits Statement is sent in the post to you on the anniversary of your plan.
Your plan will be analysed by one of our Qualified Financial Advisors via zoom call on the anniversary of the savings plan.
If you would like to book an appointment to speak with a Financial Advisor, please click the button below.