UK household debt versus assets

Really2

Graham_Devon wrote: »

How much of that is pensions?

The average adult has £860 in savings.

For the thick people, can you explain how you draw down on pensions before retirement please..or indeed, how you draw down on them to pay off your debts.

As a thick person, I would be very interested.

has that dropped massively from 2006?
http://money-watch.co.uk/697/moneyexpert-average-adult-has-double-recommended-minimum-savings

The average adult in the UK has almost double the recommended minimum financial ‘safety net’ squirreled away in their bank accounts, according to Birmingham Midshires.

Enough savings to survive three months of incapacity, or £4,128, is recommended as a sensible minimum precaution, says the building society.

The average UK adult has £7,548 in the bank, enough to cover 167 days, or five months and 17 days, according to Birmingham Midshires calculations.

RenovationMan

Really2 wrote: »

has that dropped massively from 2006?
http://money-watch.co.uk/697/moneyexpert-average-adult-has-double-recommended-minimum-savings

I saw that too when I did a quick google for average savings. It seems reasonable to expect that the figure will have reduced slightly for some (i.e. the ones who are now using their emergency savings) and increased for others (i.e. the ones who feel insecure in their jobs)

What does come across though is that it seems that everyone in the UK regards the term 'savings' to mean 'savings' and 'pensions' to mean 'pensions'. Well, nearly everyone.

Graham_Devon

I can;t remember where I saw the £860 figure. I think it was credit action, though can't find it now.

But your optimistic link is well over egging it.

£2,205 here
http://uk.reuters.com/article/2010/01/29/uk-britain-saving-ing-idUKTRE60S01B20100129

And from the ONS

An estimated 62 per cent of households had a
savings account in 2006/08. However, 50 per cent
of households with savings accounts had £3,500 or
less in their account and 25 per cent had £500 or
less.

Whatever the numbers, my question to Hamish for us idiots still stands.

Really2

Graham_Devon wrote: »

I can;t remember where I saw the £860 figure. I think it was credit action, though can't find it now.

But your optimistic link is well over egging it.

£2,205 here
http://uk.reuters.com/article/2010/01/29/uk-britain-saving-ing-idUKTRE60S01B20100129

Sorry forgot ING was more credible as it is survey is now in it's second year??

I think both may be correct with the data they used personally. But yours seems to include 16 year olds in it??

http://www.lloydsbankinggroup.com/media/pdfs/halifax/2010/50YearsofSavingsReportFINAL.pdf

f

• women (£7,507) now only slightly lower than men’s (£7,790). In addition, 34% of women held an ISA in 2008/09; higher than the proportion of me
  
• The average value of deposit savings per household has increased by more than two and a half times (161%) from £16,212 in 1959 to
  £42,330

Graham_Devon

Really2 wrote: »

Sorry forgot ING was more credible as it is survey is now in it's second year??

I think both may be correct with the data they used personally. But yours seems to include 16 year olds in it??

It wasn't more credible, but I believe the ONS to be.

You like the one that puts the figures higher, I understand that. I prefer the £2000 one as it relates to what I stated I saw better than yours. We don';t need to argue our positions out. The ONS seems to have it covered.

wotsthat

Graham_Devon wrote: »

How much of that is pensions?

The average adult has £860 in savings.

For the thick people, can you explain how you draw down on pensions before retirement please..or indeed, how you draw down on them to pay off your debts.

As a thick person, I would be very interested.

According to Lovemoney average pension pot is £25,000. If this is correct then a fairly crude conclusion would be that most of the 450% of income held in financial products is products other than pensions.

http://www.lovemoney.com/news/savings-investments-pensions/pensions/11409/five-crucial-pension-facts

RenovationMan

Graham_Devon wrote: »

I can;t remember where I saw the £860 figure. I think it was credit action, though can't find it now.

But your optimistic link is well over egging it.

£2,205 here
http://uk.reuters.com/article/2010/01/29/uk-britain-saving-ing-idUKTRE60S01B20100129

And from the ONS



Whatever the numbers, my question to Hamish for us idiots still stands.

Haven't you just answered your own question? Even the conservative samples above beat your £860. All of them refer to 'savings accounts' which signifies savings rather than pensions.

Graham_Devon

RenovationMan wrote: »

Haven't you just answered your own question? Even the conservative samples above beat your £860. All of them refer to 'savings accounts' which signifies savings rather than pensions.

Yes, and savings are accesible wealth.

Pensions are not. Not until a certain age and even then, drip fed.

Hamish appears to be calling me thick for questioning him. All I, and other people are saying, is that he keeps referring to wealth which is inaccesible, so what is his point?

I admire the running round to protect him, but would prefer it if he would just answer the simple question, which was....what was his point?

wotsthat

the_flying_pig wrote: »

Yes, that's it, the point, the only point.

How can you argue that servicing debts from income is the only point?

Yes, on an internet forum we like to argue single points but in the real world the ratio of debt to assets really matters not just the cost of servicing debt from income.

The debt to value ratio affects the cost of servicing the debt from income. More assets = more security for the lender = lower cost of debt.

Really2

Graham_Devon wrote: »

The ONS seems to have it covered.

If you exclude current accounts etc and include all those that don't save possibly?
Same report.
https://www.ons.gov.uk/ons/rel/was/wealth-in-great-britain/main-results-from-the-wealth-and-assets-survey-2006-2008/executive-summary--wealth-in-great-britain-report-.pdf+An+estimated+62+per+cent+o

Without private pension wealth,the median household wealth was £145,400[/B].

In 2006/08, the median value of physical wealth was £29,900.

So there seems to be a fair amount of physical wealth there TBH.