How Wealthy are you?

The_Green_Hornet

TBC15 wrote: »

I’ve always wanted to be filthy rich, any idea what the criteria are?

Stick you annual income in here http://www.globalrichlist.net to see how rich you are compared to the rest of the world's population.

I guarantee it will be filthy.

bigadaj

TBC15 wrote: »

I’ve always wanted to be filthy rich, any idea what the criteria are?

And don't forget cat flap ..

Albermarle

The problem with these issues is that there are many ways to present statistics, and however the ONS does it , then someone will say that does not fit with my circumstances or I would not value it like that . Or what about regions, age etc etc..
If you read the actual ONS report behind this article , then you can see they have made great efforts to be as accurate as possible , in valuing DB pensions and many other points , but there will always be points of contention
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/wealthingreatbritainwave5/2014to2016
Interestingly the ONS report does not mention anything about 'per Adult' only per household .


Otherwise I agree that property assets should be included , despite their illiquid nature.
Someone in the SE with a £600K home is in a better position long term than someone up North with a £200K house , despite the lower living/mortgage costs .
You can borrow against it, you can pass it on in your will , you can sell up and live in nice house by the sea etc . Or you could sell up and go a three times longer world cruise !

DairyQueen

Summaries by any category hide large individual differences. Even so, hands-up who didn't know that wealth is a factor of:

- Regional property prices
- Age

Given that those at the point of retirement are likely to have reached the peak of accumulation it's no surprise that those age 61-70 are the wealthiest.

Albermarle

Even so, hands-up who didn't know that wealth is a factor of:

- Regional property prices
- Age

If you dig into the detail of the report another major factor is having a Final salary pension.
Despite all the closures in recent years , the amount of wealth tied up in DB pensions far outstrips all other pensions . Presumably though the public sector accounts for a lot of this though

Audaxer

I assume that the private pensions figure does not include DB pensions as you do not have a pot of money like a DC pension. So while these figures would include someone with a DC pension of £700k in the top 10%, another person with a DB pension of say £50k per year would presumably not have their pension included in the figures and therefore probably be in a lower wealth band. However if property values and other assets were similar, I would class the person with the £50k per year DB pension as wealthier than the person with the £700k DB pension.

dividendhero

bostonerimus wrote: »

e...1M in Middlesbrough is worth a lot more than 1M in Knightsbridge.

£1M would buy all of Middlesbrough, not just one house there

I know a lot of people in the top 10% (ie £670K plus). i'd say a third of my peers are in the top 10%, me included. But on the other hand there must be masses of people who don't personally know anyone in the top 10%.

The psychology is very interesting a millionaire who mixes with multi-millionaires will probably feel quite poor

Albermarle

I assume that the private pensions figure does not include DB pensions

They do include DB schemes and they have devised a method for calculating the value.
Wealth from defined benefit pensions (current, retained and pensions in payment) is valued as the pension pot required for a specific income in the future. It is calculated using financial assumptions (discount and annuity factors) that are obtained each month to reflect current market influences

MaxiRobriguez

dividendhero wrote: »

£1M would buy all of Middlesbrough, not just one house there

I know a lot of people in the top 10% (ie £670K plus). i'd say a third of my peers are in the top 10%, me included. But on the other hand there must be masses of people who don't personally know anyone in the top 10%.

The psychology is very interesting a millionaire who mixes with multi-millionaires will probably feel quite poor

I don't know anyone in the top 10%, but then most of my peers are around 30 years old so that means they have nothing.

DairyQueen

Albermarle wrote: »

They do include DB schemes and they have devised a method for calculating the value.
Wealth from defined benefit pensions (current, retained and pensions in payment) is valued as the pension pot required for a specific income in the future. It is calculated using financial assumptions (discount and annuity factors) that are obtained each month to reflect current market influences

They are using current annuity rates to calculate the value of a DB? If so, then, blimey o'riley, OH and I have just jumped a fair few percent. Considering we own two (modest) properties, OH drives a 10-year-old car, and we will be holidaying in Devon this year, I wouldn't exactly rate our lifestyle as sufficiently lavish to warrant the top decile. Having said that, we have a sizeable pension pot and are very close to the end of the accumulation phase. I anticipate that our lifestyle will look rather different when OH retires and we start spending the fruits of 40 years labour.

We have spent those four decades working hard, supporting family, weathering three recessions and a few property and stock market crashes, negative equity, redundancy, interest rates hitting 15%, mortgage shortages, pension and endowment rip-offs, non-pensionable pay, gender pay inequality, blah de blah.

Each generation has to weather the storms and benefits of the times though which they live. We have benefited from above-inflation increases in property prices and (until the 1990s) DB pensions.

Our parents had different challenges. Our children face different challenges.

We have every intention of spending as much of our capital as possible. Our heirs will benefit only through happenstance. I would be interested in hearing from those who are ring-fencing assets for inheritance. The report assumes that Gen X will inherit big-time. Really? I wonder on what basis they concluded that?