This illustration also shows how much a plan like yours may be worth when your child is 18.5 years and compares this amount to the estimated cost of a university or college education at that time. The projected value includes principal, government grant, income on principal and grant earned to date, future scheduled contributions (if any) until your child turns 18.5 years and government grants you are expected to accumulate. The projected income on principal and grants is estimated from today’s date to the date when your child turns 18.5 based on a series of annual net rates of return ranging from 1.5% to 4.0% that reflect your child’s age group and the changes in the asset allocation over the life of your plan.

The projected value for each beneficiary in a Family Plan with multiple beneficiaries is estimated using each beneficiary’s allocation of the principal and future scheduled contributions, the income on allocated principal you are expected to accumulate for each beneficiary and the specific share of grant and grant income allocated to each individual beneficiary.

This illustration assumes all scheduled contributions will be made. It is not intended to show an actual future value. Investment returns and the actual future value of your education savings plan cannot be predicted or guaranteed.

Projected tuition and compulsory fees are based on the annual average cost across Canada for the previous school year and an assumed annual increase of 3.4% based on the previous 5 year's average. Living costs include: compulsory fees; room and board which is based on costs of residence with an annual increase of 1.95%; and the costs of entertainment, transportation and books which are adjusted using an annual inflation rate of 2%. Source: Statistics Canada 2018, university, college, government and college association websites.