We’ve used information you’ve provided, combined with assumptions made by HSBC, to illustrate whether funds you have set aside and/or are prepared to set aside for your child’s education are sufficient for the long term. The figures shown are indicative only - they're not guaranteed and are not maximum or minimum amounts.

There is a 1 in 20 chance that the investments may underperform the “poor market conditions” represented in this illustration. This may indicate a potentially negative return and in a worst case scenario, it’s possible to lose the entire investment.

Our Key Assumptions

Growth Rate

The initial results are based on an assumed growth rate associated with the risk level you selected

Investments with greater risk usually have a higher potential for gains or losses. Whereas less risky investments usually offer more stability and a lower return. 

It is also important to remember that if your children will be going to receive their education in a non-Euro country, there may also be foreign exchange risk which should be considered in any financial goals.

No risk
Since you are unwilling to accept any investment risk, financial products that may fluctuate in value are not suitable for you. Products that are suitable for you will be cash based and pay interest at the prevailing rates. The value of your money may be eroded by inflation over time.

Very low risk
Since you are only willing to accept a very low level of investment risk, only financial products whose values are likely to fluctuate a very small amount are suitable for you. These products may provide better returns than cash based investments with the aim of keeping pace with inflation. Very low risk products can still fall in value to below the amount you invest.

Low risk
You are only willing to accept a low level of investment risk than average and only financial products whose values are likely to fluctuate a small amount are suitable to you. These products may provide better returns than cash based investments with the aim of keeping pace with inflation.

Moderate risk
You are prepared to accept a moderate level of investment risk for the increased potential to earn higher returns. Financial products that are moderate risk are suitable for you and you accept that although these products may provide better returns over time they are likely to fluctuate in value. Moderate risk products can fall in value to below the amount you invest, and are more likely to do so than lower risk investments.

High risk
You are prepared to accept a high level of investment risk for the potential to earn higher returns. Financial products that are high risk are suitable for you and you accept that the value of high risk products can fluctuate significantly. High risk products can fall in value to significantly below the amount you invest, and are more likely to do so than moderate or lower risk investments.

Very high risk
You are prepared to accept a very high level of investment risk for the potential to earn much higher returns. Financial products that are very high risk are suitable for you and you accept that the value of these products can fluctuate substantially. Very high-risk products can fall in value to substantially below the amount you invest and are much more likely to do so than moderate or lower risk investments.

Inflation rate and forecasts of your financial targets
Due to the rising cost of living, the target you provide is increased in line with inflation at the rate of 2.04% when calculating your desired education fund.

Your regular contributions
We have assumed that any regular savings or investments will remain constant over the contribution period, regardless of inflation. For example, if you start off at €1,000 per month, you will continue adding €1,000 per month for each year that contributions are made.

Average life expectancy

We have assumed that average life expectancy is 83 years.

Making adjustments

If either the amount contributed at the start or the monthly contribution to the education fund is changed, we assume that the changes occur immediately.

The value of the education fund is adjusted to take into account any changes made. The return is then calculated based on the new value of the education fund.

If the risk profile is changed, the calculator will adjust the growth rate to that associated with the new risk profile.