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10% Of People In The Uk Are Millionaires

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If those assets include property and pension pots, then yeah, can easily believe it - a good chunk of the middle classes nearing retirement age who've paid off mortgages, have theoretical (non-extractable) 'wealth' in their homes along with invested money from four decades.

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Ah these are canny investors who knew which horse to back after many years of training, learning, and studying. No luck was involved.

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This is almost certainly not the case. You heard it on Sky, our more tabloid news channel. If we looked through the facts of the story, we would almost certainly see that this is nonsense. More likely it is something like 1 in 10 households, rather than people.

Another trick might have been to have converted the value of a final salary pension into a cash value. At present that can bulk up a relatively modest pension into a huge lump sum due to low interest rates.

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Another trick might have been to have converted the value of a final salary pension into a cash value. At present that can bulk up a relatively modest pension into a huge lump sum due to low interest rates.

Indeed, £50k pension today might require £1.2m in pension fund. If interest and annuity rates were nearer 10%, then £500k would do the same trick.

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I saw something saying one in ten students (graduates) become millionaires. Yeah right!

I guess "1 in 10 middle class people get large inheritance" would be another way of putting it, it wouldnt sound so much like a UCAS advert then.

Torygraph, miliking this press release as much as they can (about half a dozen articles on the same damn report)

http://www.telegraph.co.uk/education/universityeducation/10834895/One-in-five-university-graduates-become-millionaires.html

The figures, which do not account for household debts such as mortgages...

So yeah, useless info.

Per household, so under 5% if divided between adults, and not including mortgages.

So maybe 2% of individuals are millionaires, in a property bubble, on paper.

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This is almost certainly not the case. You heard it on Sky, our more tabloid news channel. If we looked through the facts of the story, we would almost certainly see that this is nonsense. More likely it is something like 1 in 10 households, rather than people.

Another trick might have been to have converted the value of a final salary pension into a cash value. At present that can bulk up a relatively modest pension into a huge lump sum due to low interest rates.

You're right, it's BS since they didn't include debts in the numbers! I also suspect they did as you suggest with pensions. By that standard, anyone with a more or less full state pension and no other assets (or debts) has a net worth of around 150K.

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The Telelgraph article is incorrect.

The ONS figures do account for household debts, including mortgages.

However the numbers are per household, not per person.

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http://www.dailymail.co.uk/news/article-2629227/Revealed-How-Britains-richest-families-HALF-countrys-household-wealth-1-10-people-call-millionaire.html

  • One in five graduates now go on to become millionaires
  • Only 3 per cent of millionaires have no formal qualifications
  • Total household wealth in Britain rose 12% from 2006-08 to 2010-12
  • Poorest half of families own just 9% of total aggregate wealth, ONS says
  • Average household wealth highest in the South East at £309,700
  • Wealth in London rose by 31% since 2006-08, but fell by 10% in North East
  • 11% have a second home and 7% have a personalised numberplate

It seems according to the Wail that you are more likely to be a millionaire if you hold a degree.

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In another thread, 11% of population have 2 or more homes. Go figure.

Sadly this ensures a home owner hegemony and we will never get the much needed political or economic reform, while crappy piles of bricks earn more than people or any form of productive enterprise.

Edited by aSecureTenant

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I should maybe also point out that property wealth is determined by asking the survey respondents what they think their home is worth.

An annex in the property report shows that people tend to be slightly (cough) on the optimistic side in this regard. For example the average value of semi-detached homes in the 2010-12 survey comes out at £205,000 compared to a figure of £153,000 from Land Reg, £160,000 from Nationwide, and £163,000 from Halifax.

This perceived value gap was much greater in the 2010-12 survey than the 2006-08 one.

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The Telelgraph article is incorrect.

The ONS figures do account for household debts, including mortgages.

However the numbers are per household, not per person.

they probably include calculated pension pots,,,for many high flyers in the Public Sector, their pot doesnt actually exist, its a notional value based on how a real fund could produce the benefit and worked back.

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I should maybe also point out that property wealth is determined by asking the survey respondents what they think their home is worth.

An annex in the property report shows that people tend to be slightly (cough) on the optimistic side in this regard. For example the average value of semi-detached homes in the 2010-12 survey comes out at £205,000 compared to a figure of £153,000 from Land Reg, £160,000 from Nationwide, and £163,000 from Halifax.

This perceived value gap was much greater in the 2010-12 survey than the 2006-08 one.

One third overvaluation. The delusion force is strong with these ones. :lol:

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assets? Or equity?

Mainstream media shills never actually seem to bother subtracting liabilities.

If we all just believe in getting to one nominal number i.e "1,000,000" GBP how are we taking into account inflation? Its the government "tax" that picks all of our pockets for everyone's lifetime. They can manipulate it to do whatever it wants regardless of the reality and it makes everyone poorer.

We'll all be millionaires in 20 years - inflation at circa 7% house price rises. But bread will cost £8 and milk £6 probably more. It doesn't mean anything. Money is simply a relative commodity to its purchasing power. Obviously most newspaper readers don't actually know this, except they have a strange feeling that bread used to cost a lot less when they were little.

The only thing that matters is owning a productive asset. e.g property where people pay you rent; factories where people buy your goods or services. These values will rise with inflation and keep the owner rich. Everyone else who is an "employee" will suffer.

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The rich own assets, and the poor own currency.

The rich stand on an up-moving escalator, the poor try to run up a downward moving escalator.

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Just heard on Sky news that 10% of people in the UK have assets worth more than 1 million pounds. Can that be true? Thats incredible.

I can believe that. But it's a generational thing.

Assume someone who's worked, say, 30 years. They're paid £50k a year and have been in the same 40/60ths defined benefits pension scheme since when they started work. The value of their accrued pension rights is currently about £600k. Toss in a mortgage free house at £400k and there you are...a cool million. But meet that person on the street and you wouldn't be dazzled by their wealth, in fact they'd strike you as every inch the dull, passed over for promotion, polytechnic educated, middle aged, middle manager, that they are.

That's a life that was absolutely on offer for anyone graduating in the early to mid 80's. All you had to do was keep your nose clean, not sh@g your secretary, and resist the temptation to MEW too much.

Today of course it's different. You start with the burden of a student loan (and as a graduate today you're part of the top 45% rather than the top 15% like the chap in the previous example), then get a crippling mortgage which in a low inflation environment won't be whittled away, your income is suppressed by a more globalised economy, and there's no secure pension waiting for you at any age over 55.

One big difference though. The dull millionaire in the previous example didn't inherit much at all, but he'll leave his kids a £400k property (if he's smart he'll also carve out some of his pension too so that becomes inheritable).

So the real lesson is that you'd better hope that's your dad.

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The rich own assets, and the poor own currency.

The rich stand on an up-moving escalator, the poor try to run up a downward moving escalator.

Indeed. All wealth really is is the manifestation of claims on future income of others within the system. So their "wealth" generally means the young who are much "poorer", are going to be screwed into the ground. But then that's been a thirty year trend so why stop now?

But there's another question which needs answering....are the young going to let them?

Edited by alexw

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A home you live in is effectively dead money......what good is any 'aire if you can't spend it, pay for it, or earn it. ;)

Equity release will be more widely used in the future, in cases were people have valuable property yet no pension i suspect it will become compulsory,this has been blowing in the wind for a while now.

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Equity release will be more widely used in the future, in cases were people have valuable property yet no pension i suspect it will become compulsory,this has been blowing in the wind for a while now.

Don't see a problem with that.......it is very unfair for someone with £15k cash savings is unable to have access to help but someone with £150k equity and a fat pension gets all the help welfare has to offer....... ;)

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