Asset millionaires - more common than you think?

[mids2019]

So maybe for a significant proportion of families combining house value, pensions, savings and possible inheritance they are actually millionaires.

I guess inflation will always being more people into this bracket (and it doesn't mean as much now) but how many of you are in this bracket?

Why count 'possible inheritance'? That's not your asset, that's someone else's asset until it becomes yours - and it might well not!

Approximately 15% of the population have a milllion pounds or more if all their assets are included (so house plus pension)

www.avtrinity.com/news/what-is-the-average-household-net-worth-in-great-britain

The wealthiest age group is 55-65 (which is not a massive surprise because over 65 most people are not saving any more and are spending their pensions)

Interesting .... I guess people in their 50s are more likely to inherit given they have elderly parents.

I wouldn't count potential inheritance, but my parents are in Dublin so they and most of their friends (late 60s/early 70s) would be between house, pension and savings including inheritances that have actually been received. It would be the same in big UK cities, especially London.

Our generation (late 30s/early 40s) not so much, as we're still mostly mortgaged, smaller pensions and savings.

I've inherited from my husband and parents. And yes I'm a millionaire on paper. But most of it is tied up in property - our home being the largest share. The rest is the house my son lives in and two investment properties - the income from which is what we live on. I'm 62.

Definitely a generational thing

Yes it doesn’t surprise me and probably more people in this bracket then people think. We’re mid thirties and if I add up everything we have it comes to around £400k. I imagine another 15 years or so of accumulating pensions, house equity, savings and investments we’ll have hit £1m. We aren’t cash rich, it’s all of the above that adds up. Neither of us come from money, we have decent jobs and don’t stand out in our circle as having more than everyone else so I think we’re in a reasonably common position for our area.

I don't think a millionaire therefore leads a millionaire lifestyle? There aren't many billionaires so do we need to have some term for people who say have 10 million or more who could be perceived as wealthy (it's all relative I guess)

As you asked - I'm in this bracket. No inheritance, age 42. Got on the property ladder very early in life and invested (with my DH) wisely. We don't live particularly frivolously but it's there for our future.

What's a millionaire lifestyle? When I was a kid I thought it meant a house with a pool and a private jet. Looking at my parents and their friends it means knowing the bills are paid, a well maintained home, nice clothes if they want them, a nice holiday every year. Definitely comfortable but nothing extravagant.

A large capital value of pension doesn't necessarily pay that much per month. A house may have a high worth but that means nothing unless you're selling it, investments are often tied up to cover future or current care etc.

To my surprise this is my situation, despite never having been in a high earning job.

I inherited a bit of money when I was 30 which has been invested sensibly, but also combined with getting on the property ladder in my 30s in London then buying from that in a town out of London which then became fashionable. So leveraged a £45k flat into a house which is worth most of a million with no mortgage.

And no definitely no millionaire lifestyle here! Am in mid 50s and my clothes have holes

Realised during divorce XH and I had a combined pot of just over a million but then we lived in a house in London, he's got a public sector pension and I inherited some money. Obviously neither of us are asset millionaires are now, solicitors are richer though 😂

You are considered not doing badly if you can get your sticky paws on £100k liquid assets.

It's what you can turn to cash quickly that helps.

I expect that number is fewer

But being a millionaire doesn't feel like being a millionaire should....seems an anachronism

This is my parents. They are asset millionaires but with assets that aren’t readily liquid. They could be liquidated and given the nature of the assets they do get a good turnover from them.

At today’s share interest rates £1m investment yields about £25000. Hardly enough to support a “million pound lifestyle”

A million isn't much these days, not if you own property in London.

We have a house worth £600kish (a very ordinary small terrace in outer London), and over £300k in savings and investments - so we aren't far off - but we live an incredibly modest life. The idea that we as a couple might be soon millionaires in the not too distant future is a weird one.

A high net worth individual is someone who can get their hands on £1-5million liquid assets.

It would if it was liquid

Just going on a train into London and you realise every house, station after station, is worth close to or over £1million. I appreciate they are not all fully owned, maybe rented or maybe with massive mortgages, but yes, there must be loads of people in this bracket

With house prices still so high in some parts of the country this has been the case for years. However, don’t assume it won’t all go in care home costs for many

Between our house and DHs pension we might be considered millionaires but in reality it will just give us a comfortable lifestyle in retirement. I am absolutely not complaining. We are better off than most but we definitely do not have a lavish lifestyle.

Inflation has made the connotations of the word "millionaire" as we used to know it meaningless in today's economy. We've probably all grown up with a million seen in popular culture as the be all and end all sum that would save all our problems, change our life, allow us to give up our jobs and mundane lives and jetset around the world sipping champagne. Gameshow or lottery jackpots, a song from a musical.....but the word has had its meaning changed.

I've mentioned this before on here, but the song "Who Wants to Be a Millionaire?" was from the 1956 musical High Society. Put a million quid into the Bank of England inflation calculator for 1956, and compare it to what the equivalent is in today's money. It's £21million!

A million today was £47,616 in 1956.