to think this income, savings and wealth calculator might give people some perspective on where they fit in

[cakeorwine]

It's from the Office for National Statistics. (based on pre Covid)

www.ons.gov.uk/visualisations/dvc1802/calculator/index.html

It uses the OECD equivalised disposable income - so basically it looks at your household and determines the relative income needed. Some people might take umbrage at this - especially with the increase in energy bills. The idea is that certain households need more income for the same lifestyle compared to a household with fewer people in.

For example - a household with 2 adults would need an income that is 1.5 x bigger than a household with a single adult in to maintain a similar lifestyle.

It doesn't take into account situations like separated parents, chilldren being away at Uni, but it does give an indication.

I think it might surprise some people where there income and savings are. But then again, a high income in some places is offset by a high mortgage.

The equivalised income is used in all set of datasets when looking at poverty.

Turns out I am doing ok...which has surprised me.

@Bellie710 it's been "equivalised" so I think it's adjusted depending on how many children you have

It's interesting that "The top 10% of households have an average equivalised disposable income of £70,900 per year " as that is much higher than income figures.

Top 10%

Top 20% income
Top 20% savings
Top 10% property
Top 10% spending

It doesn’t feel like it as we spend such a lot on my care and health… which is where a fair chunk of our cash goes.

I’m not quite sure how this has been calculated - my equivalised net disposable income is apparently more than my gross salary…

Well I'm really surprised by the level of savings people have, seems surprisingly high.

same.

And this is used by the ONS, Government and think tanks when poverty / wealth / disposable income is discussed.

A lot of people have a lot of wealth.

yep but it's taxed proportionally vs income

How many people do you have in the house?

Top 10%
Bottom 30%
Top 50%
Top 50%

Interesting

Make of that what you will.

Just me, so I understand the theory of why it is what it is… but it can’t actually be accurate

We are in the bottom 10% for everything except property which is top 30%.

Both retired and owned house for 25yrs

I only came across this a year or so ago when I went down a rabbit hole of poverty statistics, measurements and then came across this concept of equivalised income and disposable income.

It's what is used by Governments and in many official reports

It's not the same as net worth is it that adds in all pensions and assets

I have tried it againtaking out 2 of the children and it is the same, i think it is the amount of money we spend on holidays, I thought it was the amount we spent on holidays tha ttook it down but I changed it to 0 and we are still bottom?!?

Who knows but I have no concerns so will move on and ignore this :)

Bottom 40th for wealth - ok sole salary and benefits. 50th for savings. No property. Fairly low on spending but possible ove underestimated.

Top 20% for income, top 50% for property and savings. I'm quite surprised by the savings. We have a decent emergency fund for about 6 months' expenses, plus cash savings that we're about to spend on a kitchen refurb, so soon we will have even less. I'm surprised that 50% of households have easy access to cash savings of more than that, as you often hear about how many households are in debt (not counting mortgages).

Also in the top 10%. Doesn’t feel it - but suppose I’ve never known any different.

We’re in the top 30% for income, but the top 50% for spending. I’m surprised!

This is absolutely bollocks. No mortgage, retired at 53 over 2 million disposable money yet only in the too 40%.... Sorry I am not believing that 40% of the uk are in the same position as me....plus no question about pensions

yep but it's taxed proportionally vs income

missed out not!

Top 40% of what

There are 4 different % points

Top 20 income

Bottom 50 for saving

top 40 for property wealth

top 50 for spending

i thought we doing good. But i guess have to save more money.

Income top 40%
Savings top 50%
Property bottom 40%
Spending bottom 40%

..agree your age & demographic plays a huge role here. We are in our first house so makes sense. I’m quite happy with the low spending although we are mid renovations on the cheap house so spend quite a lot on that in big chunks. Interesting!