What’s a university degree worth?
Each year, more and more students and their families think seriously about the financial outlay involved in taking a degree course. With several universities outlining their plans to increase their tuition fees to £9,250 a year, further education can be a considerable financial burden.
Data from the Department for Education shows that graduates aged 21 to 30 earn on average £6,000 more than non-graduates, with the median pay in 2016 for graduates being £25,000 and for non-graduates £19,000.
A recent survey1 by a major insurer suggests that going to university could provide a substantial boost to your pension fund by the time you reach retirement. An average degree could add £43,800 to your pension fund, whilst a first-class degree could boost your pot by £57,000. A post-graduate degree could push the figure to £72,000.
The figures assume that the individual is enrolled into a workplace scheme at age 22, and they and their employer make minimum contributions until they reach 68.
So, while it may take a typical graduate at least 11 years to pay off their university debt, the benefits can accrue in later life.
1 Aviva, 2017