Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • schoey123
    • By schoey123 30th Sep 17, 12:15 PM
    • 45Posts
    • 8Thanks
    schoey123
    Over 50's, how did you accumulate your wealth?
    • #1
    • 30th Sep 17, 12:15 PM
    Over 50's, how did you accumulate your wealth? 30th Sep 17 at 12:15 PM
    How did you accumulate your wealth? I don't need specifics but more general themes. I'm interested to learn if there are patterns or different circumstances, paths people take.

    Thanks,
Page 3
    • Spreadsheetman
    • By Spreadsheetman 1st Oct 17, 11:54 AM
    • 52 Posts
    • 43 Thanks
    Spreadsheetman
    Born at the right time. Me too - member of the very last cohort to get paid to go to university. What a leg up in life.
    Originally posted by qwert yuiop
    It's a point, but it was a good investment by the government at the time. I have paid a higher amount of tax / NI over my working life since then in return for that opportunity so we both won.
    • Terron
    • By Terron 1st Oct 17, 12:17 PM
    • 114 Posts
    • 122 Thanks
    Terron
    What is wealth?
    Originally posted by Marine_life
    The usually measure is how much you own minus your debts. It does give some strange results, like newly qualified US doctors being the poorest people in the world (due to their large student loans). Still it works for most purposes.

    Here are the statistics for the UK.

    You need £1.4million to be in the top 1% and £700,000 to be in the top 2%. I am in the latter but not the former, with the largest part of my wealth being in my pensions. Since I am not drawing them yet (20 months to go) my income is around the UK average,
    Last edited by Terron; 01-10-2017 at 12:19 PM.
    • michaels
    • By michaels 1st Oct 17, 12:22 PM
    • 19,936 Posts
    • 91,428 Thanks
    michaels
    The usually measure is how much you own minus your debts. It does give some strange results, like newly qualified US doctors being the poorest people in the world (due to their large student loans). Still it works for most purposes.

    Here are the statistics for the UK.

    You need £1.4million to be in the top 1% and £700,000 to be in the top 2%. I am in the latter but not the former, with the largest part of my wealth being in my pensions. Since I am not drawing them yet (20 months to go) my income is around the UK average,
    Originally posted by Terron
    Seems to say 700k for top 5% and that was back in 2012?
    Cool heads and compromise
    • Terron
    • By Terron 1st Oct 17, 12:34 PM
    • 114 Posts
    • 122 Thanks
    Terron
    Seems to say 700k for top 5% and that was back in 2012?
    Originally posted by michaels
    Sorry, my mistake about the lower percentile.

    I found the chart for 2014



    I'm no longer in the top 5%

    It seems the largest component of housewealth is pensions at 40% followed by property at 35%.
    Last edited by Terron; 01-10-2017 at 12:48 PM.
    • k6chris
    • By k6chris 1st Oct 17, 2:27 PM
    • 151 Posts
    • 232 Thanks
    k6chris
    Bought a house to live in early, rented out spare rooms to help pay the mortgage (which helped when interest rates went to 15%!). Overpaid the mortgage, contributed 15% of all my earnings into a pension (plus what the company put in). Got into credit card debt early, but managed to fight my way out of it again, this taught me a lot. Avoided BMWs, expensive watches, the latest gadgets (always buy n-1 technology) and fashion. I am by no means wealthy, but am planning to retire before 55 with a comfortable but certainly not luxurious lifestyle.
    EatingSoup
    • westv
    • By westv 1st Oct 17, 3:34 PM
    • 4,372 Posts
    • 1,993 Thanks
    westv
    Pension wealth?
    Mine was/is:-

    DB pension job for 9 years (was actually there from 16 but their pension didn't start until 25)
    20+ years of 20% DC contributions from various companies
    Same years between 5%-10% my own contribution to DC pension.
    Marrying a civil servant.
    • michaels
    • By michaels 1st Oct 17, 10:18 PM
    • 19,936 Posts
    • 91,428 Thanks
    michaels
    Sorry, my mistake about the lower percentile.

    I found the chart for 2014



    I'm no longer in the top 5%

    It seems the largest component of housewealth is pensions at 40% followed by property at 35%.
    Originally posted by Terron
    Hmm - I wonder if the first chart was personal and the second household as it seems unlikely that wealth more than doubled between 2012 and 2014....
    Cool heads and compromise
    • fred246
    • By fred246 1st Oct 17, 11:28 PM
    • 917 Posts
    • 498 Thanks
    fred246


    As an IT manager I used PCs and and Android phones for ages. However after rebuilding my PC every year and chasing virus and my phones only lasting a couple of years, I now own an iMac/iPhone and all my family have iPhones. We facetime and share photos (new grandchild) with each other, it just works.

    In my experience whilst these products are expensive (if you settle for a lower/older iPhone they are cheaper) they last much longer and dont need as much maintenance. My iMac was purchased through Uni discount as was my Mac Mini, now 8 years old.
    Originally posted by jerrysimon
    I was going to do IT as a teenager. However, I went to do work experience and the IT manager there was hopeless. Everyone laughed at him. It actually put me off doing IT. Later one of my relatives had a brother who was an 'IT professional'. She used to laugh because if she had a computer problem she would ask him to solve it. He normally couldn't and then she would ask me. I always sorted the problem in a few minutes. An IT manager who can't build a PC that can last more than a year? Can't cope with viruses? Dear, dear.
    • ewaste
    • By ewaste 2nd Oct 17, 1:25 AM
    • 44 Posts
    • 32 Thanks
    ewaste
    To be fair a lot of IT managers really don't do much of the technical side these days, they are rightfully busy managing projects and trying to explain to the rest of the business that IT isn't just a random auxiliary service. These days it's often core to how they essentially do business, without IT they wouldn't have much of a business to run in the first place. Management often doesn't join the dots between under-investment in their IT department, especially the retention of staff, and things going to hell in a hand cart.
    • marlot
    • By marlot 2nd Oct 17, 7:10 AM
    • 3,134 Posts
    • 2,275 Thanks
    marlot
    ...An IT manager who can't build a PC that can last more than a year? Can't cope with viruses? Dear, dear.
    Originally posted by fred246
    In my department of 300 or so, there are 3 people who build PCs. The other 297 rightly do other things. And many of them are very, very good at their jobs. Only a handful of the 297 could build a decent PC - but we wouldn't want them to.
    • enthusiasticsaver
    • By enthusiasticsaver 2nd Oct 17, 7:20 AM
    • 4,848 Posts
    • 9,162 Thanks
    enthusiasticsaver
    A mixture of things contributed towards our financial position which has meant us comfortably taking early retirement.

    In the early years of our marriage we lived in London area and moved house three times each time improving and selling at a profit. My husband was offered job transfer to the West Country 30 years ago when our children were tiny so we moved to cheaper and bigger house for same price as we sold our London property. No increase in mortgage term or amount borrowed ever. No loans or credit card debt ever except for 0% furniture finance and once a car on 0%

    We spent less than we earnt and overpaid into pensions and mortgage so that was paid off 10 years ago. Started investing 3 years ago.

    We have had luckily some large cash gifts from my mum over the last 30 years but much of that has been passed on to our children or contributed to family holidays, daughters wedding, home improvements or university costs etc. Some also invested.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Triumph13
    • By Triumph13 2nd Oct 17, 11:29 AM
    • 1,117 Posts
    • 1,373 Thanks
    Triumph13
    Hmm - I wonder if the first chart was personal and the second household as it seems unlikely that wealth more than doubled between 2012 and 2014....
    Originally posted by michaels
    Yep. Just found the data and whilst both are based on household wealth, the first is given as 'per adult' whilst the second is just household total.
    • Terron
    • By Terron 2nd Oct 17, 11:34 AM
    • 114 Posts
    • 122 Thanks
    Terron
    Hmm - I wonder if the first chart was personal and the second household as it seems unlikely that wealth more than doubled between 2012 and 2014....
    Originally posted by michaels
    Both are based on the ONS' Wealth and Assests survey. The information is published in stages and up to 2014 the data is available for analysis. The first graph is titled Percentile plot of total household wealth per adult so appears to have been adjusted for the size of household by the IFS using the 2012 data.

    The second was taken directly from the government site on the 2014 data - https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/compendium/wealthingreatbritainwave4/2012to2014/chapter7extendedanalyseswealthingreatbritain2012to 2014
    As you noted that just uses total household wealth. A equivalent graph does not seem to appear in the previous report.
    So far only preliminary reports have been made for the next wave. full publication is due in December or January.

    The other survey the government does is of wealth left to be inherited. That does not include pensions.
    Last edited by Terron; 02-10-2017 at 11:40 AM.
    • MEM62
    • By MEM62 2nd Oct 17, 11:49 AM
    • 1,394 Posts
    • 1,009 Thanks
    MEM62
    How did you accumulate your wealth? I don't need specifics but more general themes. I'm interested to learn if there are patterns or different circumstances, paths people take.

    Thanks,
    Originally posted by schoey123

    I haven't got any :-(
    • jerrysimon
    • By jerrysimon 2nd Oct 17, 11:53 AM
    • 251 Posts
    • 185 Thanks
    jerrysimon
    I was going to do IT as a teenager. However, I went to do work experience and the IT manager there was hopeless. Everyone laughed at him. It actually put me off doing IT. Later one of my relatives had a brother who was an 'IT professional'. She used to laugh because if she had a computer problem she would ask him to solve it. He normally couldn't and then she would ask me. I always sorted the problem in a few minutes. An IT manager who can't build a PC that can last more than a year? Can't cope with viruses? Dear, dear.
    Originally posted by fred246

    I should have known better than to go off topic
    • Terron
    • By Terron 2nd Oct 17, 12:01 PM
    • 114 Posts
    • 122 Thanks
    Terron
    An IT manager who can't build a PC that can last more than a year?
    Originally posted by fred246
    I worked in IT for 32 years and never bult a PC, unless you count an Acorn System 1.
    • ianthy
    • By ianthy 2nd Oct 17, 1:29 PM
    • 94 Posts
    • 50 Thanks
    ianthy
    Like many other have mentioned we kept spending under control – we love travel but otherwise our spend has not really changed in the last 15 years. We both worked as contractors for some years, which gave us both an enhanced level of income for a period. We invested in 5 BTL and also our own home in London, which we will downsize in the next few years to access the equity. Plus of course pensions – we contributed the max. A good accountant to steer us thru the minefield of personal and company taxation too. I suppose we stopped working at age 50 and took a 3 year career break, once we returned I didn’t return to work, I am still taking a salary from my limited Co. OH decided he wanted to return to work but will stop within the next few year. Overall, I would say the outcome is based on having a plan and sticking to it. At times it will feel like you are a life-long saver or jam tomorrow but when you reach your end game – it feels pretty good that you managed to stay the course.
    • bigadaj
    • By bigadaj 2nd Oct 17, 3:36 PM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    To be fair a lot of IT managers really don't do much of the technical side these days, they are rightfully busy managing projects and trying to explain to the rest of the business that IT isn't just a random auxiliary service. These days it's often core to how they essentially do business, without IT they wouldn't have much of a business to run in the first place. Management often doesn't join the dots between under-investment in their IT department, especially the retention of staff, and things going to hell in a hand cart.
    Originally posted by ewaste
    Well the IT crowd was a documentary.

    It's interesting how you actually need a combination of technical people and those how can manage and interpret into other areas, in an ideal world people could do both but those who can do that well are pretty rare.
    • Triumph13
    • By Triumph13 2nd Oct 17, 3:56 PM
    • 1,117 Posts
    • 1,373 Thanks
    Triumph13
    Well the IT crowd was a documentary.

    It's interesting how you actually need a combination of technical people and those how can manage and interpret into other areas, in an ideal world people could do both but those who can do that well are pretty rare.
    Originally posted by bigadaj
    In my experience, things really go to hell once projects get big enough that the person who understands the real world issue, the person who designs the solution and the person who writes the code are all different. That's when I end up having to design side systems where I do all three to cover the shortcomings!
    • pafpcg
    • By pafpcg 2nd Oct 17, 6:22 PM
    • 170 Posts
    • 132 Thanks
    pafpcg
    An IT manager who can't build a PC that can last more than a year?
    Originally posted by fred246
    Perhaps you're misinterpreting what JerrySimon means by "building a PC"? Certainly, in my days as an IT manager, fifteen years ago it was generally assumed that a Windows-based PC would have to be "re-built" ie have the Windows operating system reinstalled every twelve months or so in order to maintain its performance.

    Now, returning to the real topic:

    The obvious answer is to send your spouse out to work! In about half of our working years, she was paid more than me!

    Apart from inheritances from our parents' generation which amounted to less than 10% of our accumulated "wealth" (and that excludes our DB pension funds that I've no way of valuing), everything else has accumulated from the excess of income from two salaries over expenditure. As we're both frugal, saving has always been easy even after taking early retirement.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

157Posts Today

2,781Users online

Martin's Twitter
  • Nice debating with (all but the rude ones) of you. Bedtime for me now. Goodnight #bbcqt

  • RT @kevmthomas: @MartinSLewis It was a comment you made about the referendum being a binary choice on a non binary issue that helped me rea?

  • To clarify this. Cameron's gamble that having a stark vote'd mean his team won. He gambled wrong (that's not a stat? https://t.co/NSCT3aKvGS

  • Follow Martin