Apprentices are financially better off than university graduates throughout most of their careers, a new study has found.
Rather than focusing on average income which prior studies have done, the research by Berl models the financial position of a graduate compared to an apprentice, and a person without formal training.
When they reach the middle of their career in their 40s, an apprentice can expect to have net assets of $489,827, a person with a bachelor degree or higher can expect to have $229,806, and a person who lands a job out of school can expect assets of $399,501.
Industry Training Federation Chief Executive Josh Williams, who commissioned the report, said: "Apprentices contribute to the economy earlier, earn earlier, buy a house earlier and contribute to KiwiSaver earlier, and pay off their mortgage earlier."
"An apprentice has a headstart which results in them being ahead of their university counterparts throughout most of their working lives. In the middle of their careers, they have paid off most of their mortgage and have no other debts.
"At the end of their working lives, there is little to no difference between a university graduate and an apprentice."
By the end of their career, however, their financial positions are almost equal, with university graduates expecting to net assets of $1,854,126, while an apprentice can expect to net $1,849,169.
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