PIMA encourages parents and grandparents to make every week CTF week
As CTF Week draws to a close, PIMA and its member companies would like to remind parents to make every week ‘CTF Week’. By saving each week into a child’s CTF, parents, grandparents and other relatives will ensure the sums really add up quickly, especially by age 18.
Recent research by PIMA revealed that nearly one third of parents are already taking action and topping up their child’s CTF. But there’s more to be done.
Contributions of just £3.50 per week (or 50p per day) to a child’s stakeholder CTF could increase the value of the child’s final sum total by almost six times.
If parents contribute £7 per week (£1 per day), upon age 18 that child could expect a savings asset of about £11,360. That’s real money to fund education or training, a house deposit or to re-invest in an Individual Savings Account (ISA).
Parents aren’t the only ones that can contribute. Grandparents, aunts and uncles and friends can also add funds. If the whole family gets involved, the contributions might get really bulky and 18 year-olds could find themselves with a really substantial pot of money that many adults would envy. Monthly contributions of £60 or £100 per month will leave young adults with some big decisions to make—how best to spend £22,959 or £37,529 (respectively).
Compare those figures with an anticipated pot of only £1,106 if parents do nothing.
But CTFs are not just about getting more money. More and more parents and grandparents are recognising the value of getting the entire family involved with the CTF. The CTF holds tremendous opportunity for a greater understanding about money and finances. It provides a catalyst for all ages to reassess their financial health and take action accordingly.
[b]PIMA Director General Tony Vine-Lott said,
‘It is very important that parents and grandparents take a long-term view of CTFs. Contributions, regardless of size, made on a monthly or weekly basis will make a significant difference over time. Parents should make a regular time each half year or year to review their child’s CTF and consider additional contributions.
The CTF was designed to be very flexible and fit the lifestyles that people lead—contributions can be made via direct debit or through one-off lump sum contributions. The more parents and grandparents can contribute early on, the more time there is for the funds to grow. ’[/b]
Notes to editors:
PIMA is the leading trade body for CTFs and tax incentivised savings. It has worked with the Government to develop and implement the CTF. This is the second quarterly CTF survey it has conducted.
PIMA wants to remind parents and their families that every eligible child could benefit from tax free saving of £1200 per year to build into a nest egg for them when they reach 18 years of age. If parents have questions or concerns, they should call or contact their CTF provider or contact the Government’s information helpline on 0845 302 1470 or by visiting www.childtrustfund.gov.uk.
[b]For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
079 0039 2531[/b]