One in 65 UK adults now a millionaire, latest figures show
I wonder which generation this could be (mainly).
The number of millionaires in the UK has shot up by 41% over the past five years, with one in 65 adults now classed as having a seven-figure fortune thanks to booming house prices and stock market gains.
The stock market thing is usually a fluke, real estate is the prime moneymaker.
There are now 715,000 millionaires living in Britain compared with 508,000 in 2010, data from Barclays UK shows. Nearly half (48%) of all new millionaires since 2010 live outside London and the south-east.
The bank’s prosperity index found that Reading, Cambridge and Birmingham are the most affluent cities outside of London, and the east of England is the third most prosperous area.
Surging property prices and big returns in equity markets in recent years have combined with higher wages and employment rates to create more millionaires as the UK economy gets back on track.
It isn’t back on track but OK.
The research shows that every UK region is now more affluent than it was five years ago, with measures including household wealth, gross domestic product (GDP), exam results, charitable donations and entrepreneurship taken into account.
QE does that.
They mean NGOs, not charities. A lot of embezzlement.
According to the Office for National Statistics, the richest 10% of households own 44% of household wealth.
And which age group are they? Pray tell.
Akshaya Bhargava, chief executive of Barclays Wealth and Investment Management, said: “The UK is becoming more prosperous, with every region having grown in affluence since 2010. It is also encouraging to see that regions and cities are starting to close the gap with London in terms of prosperity, with the north-east, for example, seeing business growth rates behind only London.”
London and the south-east remain the most prosperous regions, and the capital boasts the most millionaires, up 48% in the past five years to 191,000 – more than the combined millionaire population of Wales, Scotland, Northern Ireland and northern England.
The east of England comes in third behind these two, as rising house prices push more wealthy Britons outside of London, with 23,000 more millionaires calling the eastern region their home.
Reading is listed second for prosperity in the UK, according to the index, with average earnings of £30,562. Growing numbers of entrepreneurs in the UK is also seen as a factor in increasing wealth, with Cambridge emerging as a startup hub and ranking third.
The north-east and Newcastle fall low on the prosperity index. But the study showed the highest rate of growth in millionaires was in the north-east and Wales, both up 50% since 2010. The study said northern regions “may be on the cusp of change, with the north-east leading the way”.
Despite the jump in wealthy Britons over the past five years, the research said growth in millionaires was expected to return to more normal levels over the long term, with a 9% increase in the UK expected by 2025, in line with GDP growth.
Almost like they brought in a new tax on BTL (buy to letters).
If we go back to before the Boomer panic of the Guardian, to 2011: http://www.theguardian.com/business/2011/feb/28/baby-boomers-secret-millionaires
The inadvertent burden baby boomers have bequeathed the young is sending Britain broke.
…Yet the accusation that boomers are protecting themselves at the expense of everyone else still stands, because relatively ordinary boomers will retire as millionaires, paid for by younger workers. Even the poorer over-50s need to recognise they are going to take out of society more than they put in….
Among other resources;
One British household in every 10 now has total assets exceeding £1m, according to a new book based on work at the London School of Economics published last week
Wealth in the UK crunched the findings from a comprehensive official survey that took place between 2008 and 2010, and found that 10% of households had total wealth of £967,200 or more….
…As lead author Professor John Hills explains: “It is not that there are millions of people with millions of pounds in the bank, but rather that London property prices and – for those lucky professionals who retain them – final salary pensions have quietly made technical millionaires out of many who would only consider themselves as solidly middle-class”….
…In addition, over-55s accounted for most of the 2.5m ‘millionaire households’, having benefited in particular from rising house prices. But there’s also a great wealth disparity among households in this age group….
Yet about 1 in 10 of those still managed to fail. Fail to save. Ever. Because magic money.
…The top 10pc in that age group own assets worth more than £1.46m, said Prof Hills, and the typical household had wealth of £431,000…..
…He also warns against the complacent temptation to regard the great surge in wealth at the top end as a “purely paper” phenomenon, arguing instead that it will have implications for social mobility for a long time to come…
translation: Gen Y are fucked.
The members of Britain’s baby boomer generation who are just starting to enter retirement have been called “the richest generation in history”. Yet, to a large extent, the British welfare state still treats age as a proxy for need, transferring large amounts of public money to all pensioners in the form of universal benefits, regardless of how wealthy they are.
Old goats for votes.
In order to help further the debate surrounding how Britain’s welfare state should be reformed as the population ages, IF undertook this study to discover how many members of the older generation live in households that have assets of more than £1 million, using data from the 2008/10 Household Wealth and Assets Survey.
The author estimates that in 2011, there were approximately 1.9 million over-60s living in households with asset wealth greater than £1 million, 1 million of whom were over-65 (above state pension age for both males and females). This finding should lead to increased debate about how the British welfare state treats pensioners who have large reserves of private asset wealth, and whether benefits should the distributed according to need rather than age.
Remember the Communist mantra?
…Pattern? What pattern?
In case you think I’m doom-mongering for Gen Y (Gen X got a mixed bag): http://www.dailymail.co.uk/news/article-3108441/Generation-Y-left-pick-6trillion-tab-Report-warns-children-born-1980-2000-face-apocalyptic-levels-debt-Government-spending.html
It begins (from this June);
Younger people are being left with ‘apocalyptic’ levels of debt, a report warns today.
So-called Generation Y, born between 1980 and 2000, will be forced to pick up the bill for decades of Government over-spending, it is claimed.
*throws K-selection confetti*
Analysis by the Centre for Policy Studies (CPS) accused baby-boomers of making unfunded promises on pensions and benefits and then leaving their children to pick up the bill.
Coupled with unaffordable housing, university debts, poor pensions and a ‘rapidly retreating state pension age’, Generation Y now faces ‘a quality of life below that of their parents’.
The CPS accused politicians of ‘fawning over the baby-boomers and older pensioners’ as they were more inclined to vote. The think-tank says the state’s liabilities – including ‘off the books’ spending commitments – is £6trillion, or £221,000 per household.
In the report, Tory peer Lord Holmes of Richmond said people in their twenties and early thirties faced ‘a struggle not experienced by previous generations’ as they had been left to pick up ‘the tab’.
He said: ‘Why should you suffer a standard of living lower than your parents?’.
The think-tank said overall liabilities had risen by hundreds of millions in the last five years alone – despite the country supposedly living in an age of austerity.
The CPS said the bill would be picked up by today’s young people, so-called Generation Y.
Their parents and the so-called baby boomer generation born after the war have been protected by politicians unwilling to upset older generations who are more likely to vote.
…In a devastating analysis, the report’s author, Michael Johnson, says: ‘Baby-boomers have become masters at perpetrating inter-generational injustice, by making vast unfunded promises to themselves, notably in respect of pensions.