Latest news with #Saltus
Yahoo
25-05-2025
- Business
- Yahoo
‘We earn £345k, but soaring private school fees mean we can't go on five holidays'
Last summer, Al Moy, 38, an investment banker and father of three, received a letter from his daughter Ali's school saying they were increasing their fees by £10,000. Shortly afterwards, fees for the school his son Harry went to went up by £5,000. 'Almost overnight, the school fees went up from £55,000 per year to £70,000. The increase was shocking, but not entirely unexpected,' Moy says. 'Ultimately, I believe, the education provided and the sacrifices we will have to make are worth it.' Al is not quite sure why the increase at his daughter's school was so much more than his son's, but said they broke it down as £7,000 VAT, £2,000 on social activities and a £1,000 administrative fee. Moy earns a comfortable salary of £225,000, while his wife, Alexandra, who also works in banking, earns £120,000. Currently, they have two out of three children at fee-paying schools. Despite their collective income of £345,000, they have had to make a number of cutbacks to offset the increase in fees. These include holidays, eating out in restaurants, the weekly shop and household outgoings. As well as the fees for their 13-year-old daughter, Ali, and nine-year-old son, Harry, Al and Alexandra spend around £10,000 a year on a part-time nanny for their two-year-old, Barry. They try to alternate the days they work from home to make sure one of them is always around to help out with childcare and the school run. A recent report by financial planning firm Saltus found that the total 'lifetime' cost of sending a child to a private day school is now £476,399 – £94,486 more than before the VAT exemption was lifted. It is due to surpass £500,000 for children starting in 2026. Saltus questioned families about how they were going to manage the increase in fees, and while almost half (48pc) said they planned to keep their children in private school, three quarters (76pc) said they planned to make changes to do so. Four in 10 (41pc) said they would be cutting down on holidays, more than a third (36.6pc) said they would try to reduce everyday spending, and a quarter (23.6pc) said they would either be getting a new job that paid more or take on additional work, the Saltus Wealth Index Report showed. The Moys, who are originally from Singapore but also lived in New York for 20 years, have decided that rather than disrupt their children's education, they will make sacrifices in other areas of their lives. 'Both schools have excellent reputations and academic programmes, and our daughter is at an age where her peer group is everything. She's been at that school with the same group of friends since she was five so it would be a real wrench to move her,' Moy says. Moy, who went to private school in Singapore, says he doesn't have much experience of the UK state school system, but wants to give his children the best possible education he can. He feels a private school is the best way to do that. The biggest cutback they have made on their outgoing is holidays. 'Before the VAT increase, we'd have gone on around five holidays a year, including several long-haul trips,' he says. 'In previous years, we've been to the US a few times and stayed in New York and travelled around, visiting the Hamptons, but now it's mostly Europe and maybe one long-haul trip a year instead.' Moy estimates they have cut their holiday spend from around £40,000 per year to £20,000. During their last holiday to Holland, for example, they travelled mostly by train, didn't hire a car and did fewer activities as a family. 'We planned everything quite carefully and, while we didn't want the kids to feel in any way restricted, we also made sure that we were more mindful of budgeting and stayed in cheaper hotels. 'The biggest highlight for our daughter was probably a visit to the tulip fields,' Moy says. Rather than go away for two weeks at a time, they now take shorter breaks too. Another area the Moys have cut back on is eating out and being more careful when they do the food shop. 'Before we would just go to Waitrose and M&S, but now we go to Sainsbury's too and always look out for the offers and promotions in each different shop,' he says. They used to go out two or three times a month and enjoyed eating at restaurants like The Ivy, Bill's, Gail's and Gaucho's, but now they only go out about once a month. 'We rotate restaurants now and ask the kids what particular restaurant they might like to eat at,' says Moy. With at least one of the couple working from home during the week, it's been almost impossible to reduce the cost of utility bills, but they have cut back on some other household outgoings, such as the gardener. 'The gardener used to come twice a month, but then he increased his costs from £230 a year to £245 a year. We only have him come once every other month now.' Although they have tried to shield their children from the stress of worrying about finances, Moy thinks his daughter has also become mindful about reducing her spending. 'She loves to buy sweets and take them to school, but now she'll ask whether she really needs or wants them, and take something along from the pantry at home instead.' Moy says he understands why Labour put the VAT changes for private school fees in place and they didn't want to do a U-turn, but doesn't think they thought it through. 'It seems as though families like us are paying more and more, and being squeezed on everything from our salaries to our outgoings. I know each party has its flaws, but I think the Conservatives are at least a bit more transparent,' he says. The Moys have another two years before their youngest starts school. Will they go private as they have done with their older two? They are currently trying to weigh up whether they can afford it. 'We're looking at different options and researching the best local schools, including state schools,' he says. 'Fortunately we have two years before we have to decide.' Who knows what the financial landscape will look like by then. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wales Online
07-05-2025
- Business
- Wales Online
People are now supporting their parents, as well as their children
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info People in the UK are increasingly propping up multiple generations of their families, placing significant pressure on their own financial wellbeing, according to the latest Saltus Wealth Index Report. Saltus surveyed people with assets of £250,000 or more, and found a growing number are providing both downward and upward financial support, often at the expense of their own financial goals. Almost three quarters of High Net Worth (HNW) parents are providing financial support to adult children, two thirds are supporting their own ageing parents or grandparents and as many as one in eight are doing both. The findings mark the emergence of what Saltus is calling the 'bank of son and daughter' (BOSAD), where grown-up children are now supporting elderly parents, reversing the traditional flow of intergenerational support. This new trend comes on top of the well-documented 'bank of mum and dad' (BOMAD). The Report shows that while 42% of HNWIs are managing to fund the support through excess income, a third have had to sell or use investments and 18% have cut back on lifestyle spending. One in eight say they are sacrificing their pensions by either dipping into their pots or reducing their contributions. The top reasons for supporting adult children include house deposits (23%), car purchases (19%) and day-to-day bills (15%), while shopping (45%), utility bills (43%) and rent or mortgage payments (26%) are the most common ways HNWIs are helping their own parents. Medical expenses are also common. Almost one in five of those supporting family have gifted more than £10,000 in the past year (more than half of those, and 7% overall, have given more than £15,000) while the average sum gifted is £7,500. Mike Stimpson, Partner at wealth management firm Saltus, said: 'The data reveal a remarkable insight into how wealth is flowing through families. The traditional 'bank of mum and dad' model is now matched by a rising trend of adult children stepping in to support their parents as the 'bank of son and daughter'. 'This growing financial squeeze is changing priorities and prompting many to make personal sacrifices. The government is asking a lot of people who have worked hard to establish themselves. They are often key to funding business growth, providing seed capital and creating jobs - if they are forced to choose between supporting their families and investing in the future, there could be implications for the wider economy through reduced investment, pension saving and wider spending.'
North Wales Live
07-05-2025
- Business
- North Wales Live
People are now supporting their parents, as well as their children
People in the UK are increasingly propping up multiple generations of their families, placing significant pressure on their own financial wellbeing, according to the latest Saltus Wealth Index Report. Saltus surveyed people with assets of £250,000 or more, and found a growing number are providing both downward and upward financial support, often at the expense of their own financial goals. Almost three quarters of High Net Worth (HNW) parents are providing financial support to adult children, two thirds are supporting their own ageing parents or grandparents and as many as one in eight are doing both. The findings mark the emergence of what Saltus is calling the 'bank of son and daughter' (BOSAD), where grown-up children are now supporting elderly parents, reversing the traditional flow of intergenerational support. This new trend comes on top of the well-documented 'bank of mum and dad' (BOMAD). The Report shows that while 42% of HNWIs are managing to fund the support through excess income, a third have had to sell or use investments and 18% have cut back on lifestyle spending. One in eight say they are sacrificing their pensions by either dipping into their pots or reducing their contributions. The top reasons for supporting adult children include house deposits (23%), car purchases (19%) and day-to-day bills (15%), while shopping (45%), utility bills (43%) and rent or mortgage payments (26%) are the most common ways HNWIs are helping their own parents. Medical expenses are also common. Almost one in five of those supporting family have gifted more than £10,000 in the past year (more than half of those, and 7% overall, have given more than £15,000) while the average sum gifted is £7,500. Mike Stimpson, Partner at wealth management firm Saltus, said: 'The data reveal a remarkable insight into how wealth is flowing through families. The traditional 'bank of mum and dad' model is now matched by a rising trend of adult children stepping in to support their parents as the 'bank of son and daughter'. 'This growing financial squeeze is changing priorities and prompting many to make personal sacrifices. The government is asking a lot of people who have worked hard to establish themselves. They are often key to funding business growth, providing seed capital and creating jobs - if they are forced to choose between supporting their families and investing in the future, there could be implications for the wider economy through reduced investment, pension saving and wider spending.'
Telegraph
13-02-2025
- Business
- Telegraph
Ultra wealthy regret voting Labour as confidence plummets
The majority of rich people who backed Labour at the election now regret it, according to a new poll. Two thirds of high net worth individuals (HNWI) who voted for Sir Keir Starmer's party last July now wish they hadn't, a survey from wealth manager Saltus has found. Policies that have shattered faith in Labour include A poll of 2,000 people, each with more than £250,000 of investable assets, found confidence in the economy had plummeted among this group since the election. The percentage of wealthy individuals who are confident in the economy's prospects has plunged from 84pc in August, a month after Labour's election victory, to 48pc today – a record low. Mike Stimpson, a partner at Saltus, said: 'The extent to which the confidence of high net worth individuals has collapsed demonstrates a missed opportunity for the new Government, who had high levels of support when they came to power and drove the highest levels of HNWI confidence in the UK economy we have ever recorded. 'Confidence is a critical component in growth, and the fact that this vitally important group of people – the wealth creators, employers and investors in the businesses of tomorrow – feel that the UK economy is not on the right track is a cause for concern.' Labour campaigned hard to win over the wealthy at the last election, with promises not to raise key taxes and a vow to focus on economic growth. Sir Keir claimed his was 'the party of wealth creation' in Labour's manifesto. It paid off as donations flooded into Labour's coffers. Big backers include Gary Lubner, the former chief executive of Autoglass's parent company, who More than one third of the country's HNWIs eventually backed Labour, according to Saltus. Mr Stimpson said: 'It can be described as a protest vote. The Conservative party had really lost the confidence of many, but not all, high net worth individuals. The famous Liz Truss mini-Budget really was damaging.' However, optimism has 'disbanded at an absolute rate of knots' in the wake of the Chancellor's October Budget, which raised taxes by a record amount. The wealthy fear worse is to come: more than eight in 10 think the Government will increase taxes further in the coming year. They believe capital gains tax, income tax and inheritance tax are most likely to rise. As a result, High-profile exiles include The exodus of the wealthy has forced the Government to reverse course on a planned tightening of the non-dom tax regime. Rachel Reeves announced changes that will make it easier for non-doms to bring money instantly to the UK last month. Speaking at the World Economic Forum in Davos, Ms Reeves said the aim was to keep more wealth in Britain: 'We're always interested in hearing ideas for making our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and wealth in the UK.' A continued exodus of the wealthy would hammer the economy and the Chancellor's tax take. The top 1pc of earners currently pay almost 30pc of all income tax, so driving the rich out of Britain has a disproportionate impact on the public finances. One wealthy Labour supporter who does not regret voting for the party is Dale Vince, the green energy tycoon who gave £5m to the party ahead of the election. An Treasury spokesman said: 'At the Budget, we made the difficult decisions needed on tax to fix the foundations and increase investment in public services and the economy, to rebuild Britain and unlock long-term growth.'
Bloomberg
13-02-2025
- Business
- Bloomberg
Two-Thirds of Wealthy UK Labour Voters Regret Their Decision
Prime Minister Keir Starmer has lost the support of wealthy voters who helped his Labour Party secure a historic majority in last year's UK general election, according to a new survey that lays bare the seven month-old government's waning popularity. Some 66% of people who voted Labour last July now regret that decision, according to a survey of 2,000 Britons conducted in January by the wealth management firm Saltus. Respondents cited the government's increase in employment taxes, as well as decisions to scrap the winter fuel allowance for most pensioners and sales tax on private school fees. Those surveyed had investable assets — such as cash, shares and bonds, but not property — worth at least £250,000 ($310,000).
