Thanks so much for watching and do let me know in the comments if you are surprised or not by the data... is it what you would have expected? 👍

@xrpthegamechanger

2 жыл бұрын

What do you think of this as an idea? Don't pay any state pension for new babies born but the government but £10k into 4 or 5 index funds. Total cost = £10k EVER. By tge time they reture the draw down on that will mean they don't need a state pension

@xrpthegamechanger

2 жыл бұрын

Also means "state" retirement age could be in the region of 60

@EdmundBaileyUK

2 жыл бұрын

Thanks Brian, yes in effect it would be a funded scheme which was considered when the State Pension was revised back in 1946 under the National Insurance Act. The primary issue you have with a funded scheme is that someone has to fund it that technically wont benefit from it. So you'd have to fund £10k per baby born with just under 700k being born every year whilst also funding the state pensions of all the unfunded retirees.

@jonathanhowson6420

2 жыл бұрын

This is household. I am far higher than the average for my age range just on my own. I thought I was massively behind. Definitely not going to stop pushing though. 35 years old and and still batting around in my 13 year old toyota with 110k on the clock, but I own 66% of a 3 bedroom red brick house in one of the most desirable towns to live in in England and saving around 20% into retirement. 12 months emergency fund in cash and about to set up my own business as a side hussle that should tripple my income. Lets go!

@EdmundBaileyUK

2 жыл бұрын

@@jonathanhowson6420 sounds like you have put the work in and know exactly where you are and where you are going!! Lovely position to be in!

Turned 50 years old 4 weeks ago ... have no mortgage on my home ( value approx £220,000 - £230,000 ) , no credit card debts or loans , cash savings of approx £20,000 plus approx £12,000 in physical precious metals , car is paid for ....and earn around £5,000 - £6,000 per year as a gardener , home contents and tools etc worth maybe £20,000 .....so consider myself very lucky and fortunate. ... has taken a lot of 50 - 70 hour weeks to get here though

@EdmundBaileyUK

2 жыл бұрын

Thanks for the insight J G!! And congratulations as you sound very happy and content with what you have and where you are... which is a lovely place to be!

@JG-fv9bv

2 жыл бұрын

Many thanks , my weekly outgoings to cover the essentials such as gas, Electric , Council Tax etc are only £58 per week and I don't consumer spend . Too many people caught up in spending much of their income on lots of things they don't actually need and being brainwashed by the advertising into thinking their lives are somehow not as fulfilled if they don't have the latest thing

@macho2820

2 жыл бұрын

JG, my hat is off to you sir. I also do believe that when people get to 40-50-60 and have no savings/ or living paycheck to paycheck, it is their fault. I am also following your footsteps, working 80h per week for the past 7 years. I have seen my wealth gone up significantly throughout the years as well. The result is: 35 years old here, no personal debt, sizable savings... Next step is to pay off my mortgage in 7 or 8 years.

@lisag9493

Жыл бұрын

@@macho2820 working 80 hours a week seems a heck of a lot ,, but well done for having such a fantastic work ethic,, you will reap the rewards one day and look back and think ,, how did I work all those hours? Remember ,, when working so hard making a living, don’t forget to have a life

@fontane007

Жыл бұрын

@@macho2820 you’re right that’s “it’s there fault” but it’s also a little harsh as nobody is taught this thing in school and every day, people are brainwashed to buy, buy, buy, get credit cards out, pay for a big house with a big mortgage, etc. Many people just don’t realise until it’s too late that the pension they’re going to get won’t be enough and they will probably have to work until they die. It’s horrible and it’s wrong. I myself only really stopped living from paycheck to paycheck a few years ago and I know plenty of people that still do. Congrats on seeing this at a young age 🙂

We want more videos! Love your channel and its doing awesome!! Never stop!! :)

Excellent analysis. Thanks for the level of detail. As a 61yr old I was somewhat surprised at how "well off" I appear to be compared to average and median (but I have been aggressively saving for retirement over the last 20yrs...). Lesson learnt for all you youngsters out there - harness slow and steady compound returns as found on likes of t'stock market.

@EdmundBaileyUK

2 жыл бұрын

Thanks so much KJ! Yes it’s interesting as i think we all react differently to these numbers depending on where we and how we are doing with our own journeys!

More to wealth than financial success.As long you have enough to get by, health and happiness is far more valuable

@simonxmathews

25 күн бұрын

💯 You can’t take wealth with you when you die, may as well try and enjoy your time as a healthy, happy person 👍

first time watching this channel. Really useful material shared & thank you for your clear commentary

@EdmundBaileyUK

4 ай бұрын

Thanks so much!! 🙏🙏

Very interesting and thought provoking. Scary from a societal pov 😬

Very interesting video. As a 30 year old, I’m feeling very satisfied and proud right now.

Currently just turned 36. Have around £170,000 equity in my home with £106,000 left on the mortgage. Have £85,000 approx in S&S ISA Have approx £10,000 in a private pension (as you can see I focus more on my S&S) Have approx £160,000 in other financial wealth which I use to top up my S&S each year on April 6th. My goal is to have a net worth of £1,200,000 by age 60. This will give me an annual figure of around £50,000 and couple with our state pension will go to just over £70,000. Only been doing my S&S ISA for 3 years now and it’s already made me approx £9,500. All dividends reinvested. Wish I’d have known at age 21 I’d be a multi millionaire by now.

Speculating as a 40 year old… The jump between 35-39 and 40-44 wealth could be the first cohort significantly impacted by inheritance and therefore maybe more money to distribute across their own estate?

@josephnicholson6776

2 ай бұрын

Id guess it's more likely due to timings than anything. Those in the 40-44 will have hit a good time to buy a house and stick pensions savings into the stock market, as they will have been late 20s after the financial crash.

It’s a real shame you are not doing videos any more. The whole world has changed and pensions too in the last 11 months.

@summerrr1

2 ай бұрын

He Edmund Bailed on us.

@EdmundBaileyUK

2 ай бұрын

🤣 You’ve won the internet 🏅

I'm very surprised by the median figures for individuals. They seem incredibly high to me. I think I'm quite comfortably off but I'm way below these figures.

Useful video, even if it really is about your own personal wants and needs. Given the skew mentioned, this video would be great to cover in either quartiles or decile groups (or with standard deviations!)

As always a very interesting video and great video. + Your channel is doing awesome now. :)

Great video, it helps put things into perspective. I'm a regular saver and investor at 27. 61K in a Stocks and Shares ISA, 45k in a SIPP. 5K emergency fund, approx 100K equity in my home with my fiance. I can't help but think I'm behind/not doing as well as I should be though. I guess I need to stop complaining.

@callumwright2085

6 ай бұрын

You are nowhere near doing bad or behind. I'm in a similar situation. Just keep sticking to your plan, stop worrying about others.

@ksssssss

6 ай бұрын

You're way ahead, because you understand money at a young age. Time in the market ...

Wow - I'm shocked at how low the numbers are for people's retirement on both average/medium 😮 This should scare most people and help shift priorities to investing much more in their pensions in their 20's/30's/40's so compound interest can make a really big difference

That’s very useful, thanks.

Hope you are well Edmund, new sub. Would like to see you more often.

Wished Id found you,before talking to another FA🤔...Dont have any private pension,work one worth pennies 11k and im 60yrs,but have saved long and hard,no mortgage,that was always my goal,,get rid of that ball and chain. Thank you for sharing your knowledge

Hope you are still producing videos Edmund? Been a while and I enjoyed your content..

The challenge with the data shown is the treatment of missing values. These are the median (middle of the range) excluding people who have no savings etc.

Always enjoy your well researched content.. thank you

@EdmundBaileyUK

2 жыл бұрын

Thanks so much Will!! 🙏🙏

I’m 55 with assets of 900k, so your spreadsheet is more or less spot on for me personally. If I was asked where that ranked me overall in the UK I would say maybe in the top 30-35%. But it’s all relative.

@EdmundBaileyUK

2 жыл бұрын

Thanks for the comment. It is interesting when looking at this as to where your own situation is!

@andymacgregor16

2 жыл бұрын

@@EdmundBaileyUK actually I may be confused… I was looking at your first excel, the following two had the figures much lower. In which case I may be better off than I thought. But I don’t feel it. We live a modest lifestyle.

@shaun7638

5 ай бұрын

Perhaps but most would disagree,

I'm 35 I own what could be considered a starter home (3 bed terrist) but house prices are now so obscene its unlikely I will be progressing massively up the ladder.

Shows that state pension will always exist, at least those that get it will be in more need of it. Gov really needs to enforce a fixed percentage of DC pension contributions on employees at 30 ish

@Insertnamehere3000

13 күн бұрын

I went to India and stayed at a 5 star hotel for work. Right next to this hotel I saw a dead body. I asked why he was left there. My guide said me was poor. India already has more wealth than the uk so its only a matter of time before dead people are on uk streets forgotten by other.

One thing to bear in mind is inheritance. Many over 55s, especially those from middle class backgrounds, will have inherited money and/or property, often quite substantial in nature. This will be a factor when looking at the rapidly rising wealth in this age group.

@onetone4561

2 жыл бұрын

Not so much now as the care homes take all the wealth from the estate.

@stevegeek

2 жыл бұрын

@@onetone4561 Soon to be capped at £80k or so, if I’m not wrong

@stevegeek

2 жыл бұрын

From October 2023, the government will introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime.

@pjay3028

2 жыл бұрын

@@stevegeek £80k for care costs only! All other living costs are in addition so the total expenditure whilst in care will be significantly higher than £80k, if the cap is triggered.

@stevegeek

2 жыл бұрын

@@pjay3028 OK, good point. I wouldn’t be surprised if this was scrapped anyway, given the financial mess the country is in now.

Love this, so helpful, thank you

You all need to read, The Great Taking by Richard Webb.

Hi Edmond. Do the annual household amounts take into account non-mortgage loans (i.e. student loans?)

Great video! Please learn the difference between less and fewer!

@EdmundBaileyUK

2 ай бұрын

Thanks, I’ll try but old habits…

@screechypie

2 ай бұрын

@@EdmundBaileyUK :)

Love your channel and valid information you provide.

@EdmundBaileyUK

2 жыл бұрын

Thanks so much for the kind comment!! 🙏🙏

Medium is such a good benchmark I use it in every day in my industry(diary cattle fertility performance) it’s so much better than average to my clients

@EdmundBaileyUK

2 жыл бұрын

Thanks, yes the impact of outliers is huge and median does a nice job of producing more realistic numbers.

After watching this I feel so behind 😣 I'm 34 but only started saving more seriously into a pension a few years ago. Owning my own home is a distant dream, it's really not looking too good for us millennials. I'm even hearing that the state pension might not be around for us by the time we retire 😵

@EdmundBaileyUK

2 жыл бұрын

Yes, its incredibly tough and unfortunately taken a turn for the worse so far in 2022 with increasing property prices and a cost of living squeeze. Well done on getting the pension going! You still have time!

@Mike_Ripper

2 жыл бұрын

The trouble is that the younger generation keep objecting to the State pension increasing little realising that is their generation that will end up with a much smaller pension as a result. 8% (last year) to a pensioner would have been a short term cost to the Government but 8% to a 20 something year old would have been locked in for the next 40 or 50 years. That's the real reason why the Government baulked at the increase . . & , ultimately, reneged on their own triple lock pledge.

@frankjaeger393

2 жыл бұрын

I'm 33 and only started paying into pension seriously this year so not on your own bud, hey atkeast this year we are getting cheaper stock.

@sid35gb

Жыл бұрын

A few things. State pension is in effect a social contract the young pay for the old and for it to be fair the system has to be maintained so vote accordingly. As for home ownership or having somewhere to live this should be low cost. I think it’s wrong for property to be viewed as an investment because shelter like food is a basic human need and should not be made into something that effectively becomes unobtainable condemning future generations to a life of debt just to meet a basic human need. Strong rules need to be put in place to keep property and rental prices low with strong rules to ensure a safe and comfortable place to live is available to all.

@SK-kh2rs

Жыл бұрын

@@Mike_Ripper they got the full increase. Boomers get what they want

Thanks for the interesting video! Many reports put the average UK pension pot at 60k to 90k at retirement ... but I guess that average includes those without pension to lower the total, and the ONS are only including those with. I thought the figure for Financial Wealth for each group was quite low after the 40-44 bracket - but as it's a net figure, any personal loans/outstanding mortgages etc. would reduce that down

@EdmundBaileyUK

2 жыл бұрын

Thanks Roger. Absolutely the average UK pension pot figure is often quoted but there is rarely an explanation of what that number includes, the age group it encompasses, whether it does or doesn't include DB, the numbers are always meaningless without basis of the calculation.

@jeanlind7540

Жыл бұрын

State pension in UK varies, I believe one has to have paid tax on over £6k per year for 35 years to receive highest pension. Private pensions again depend on length of time paid in & amounts contributed by individual, called AVCs, but on retiring one can take 25% lump sum, which is non taxable then pension for life.

Wowzers. I'm 40... I need to do some calculations as quite bizarre seeing these as a benchmark...

It's irrefutable, though, that luck plays a huge part in life. Im doing ok at 58 but seen friends made practically destitute at 40 by divorce that wasnt their doing. So I always keep that in mind before patting myself on the back.

@EdmundBaileyUK

23 күн бұрын

Absolutely agree with this! 👍

This is very subjective. How do we know what people’s wealth is? I’ve never met a rich person who is willing to share what their wealth is and how that’s broken down across different assets classes. They are certainly not likely to divulge that information on a government survey.

@EdmundBaileyUK

3 ай бұрын

Thanks for the comment. The statistics are taken across a broad section of society and include data from public services and benefits and tax. And agreed some individuals will be unlikely to share or will actively provide inaccurate information but that will be a very small number of outliers and will be factored into the numbers.

The inevitable is clear, especially for someone living in London, with no property assets, living in a high rental cost area and with meagre savings and private pensions. Working well past 65 is the only solution for millions and probably until 75+. Retirement is a terminology of the past, and for most is a complete irrelevance.

@robevans5507

2 жыл бұрын

not really im retired at 34 due to having professional traders trading the foreign exchange market on my behalf im averaging 2k+ a week so dont believe everything you see or read on the tv/papers etc etc plenty more ways out there to make money without actually working ill even throw in crypto as an example

@phil2443

8 ай бұрын

Retirement is irrelevant until you want to retire. Take into account getting old which hardly anyone does in middle age. Your body starts to slow down at age 60 and you just have to stop working by 65-66! It's the law!

@akula9713

25 күн бұрын

Get out of London!

Odd that occupational pension not included in your headline: this can be a major source of wealth in retirement. Failure to maximise investment in occupational pension is a big mistake

I came to the UK in 2015 and I am 23 years old. So far have got 29k in saving and 3k Nio stock in long run I will invest more

@jonsnow6741

Жыл бұрын

well done good start . keep it up.

Looking at the median figures I think we are doing ok. I’m just about to retire. House is worth £475, savings of £55k, joint monthly pension of £2700 but this will go up to £4000 when we,both hit 67. No debts, no mortgage.

@AgileSnowWeasel

5 ай бұрын

The key is paying off the mortgage by the time you retire, be that 55, 60, or 67. I've got 20 years to go to retirement, and clearing the mortgage - not at the expense of better rates elsewhere - is key. Or downsizing in 15 years (easily possible, I'm in a hot area, so plenty of cooler areas that are 200k less for the same within an hour of me) as the backup plan. Just got to get the pension savings up to 500k (in today's money) which is going to be a slog.

@shaun7638

5 ай бұрын

Interesting Comment,You have enough to support you and i Should imagine live easily without waste in Whats coming in. Good luck

8 months Edmund. We need more content 😅 hope all is well.

Very useful analysis, thank you

@EdmundBaileyUK

2 жыл бұрын

Thanks so much Neil!

I am surprised by the high level of median physical wealth. If I add up all my household contents including TVs, laptops, phones, furniture I struggle to get past 10K. My new car is worth 30K but on PCP so it is a debt rather than an asset. I have about 8K in collectibles consisting of antiques and jewelry. So all in all I would say my physical wealth is approximately 18K which is way lower than the UK median of 28K. However I am way above the average and median in the other categories. Perhaps this means I should treat myself to buying more "physical stuffs" lol

@EdmundBaileyUK

2 жыл бұрын

😀 Clearly you are behind with your tangible positions... you need more visible wealth!! Thanks and yes I'd agree that the physical wealth was far higher than i would have expected. It is self reported so perhaps liabilities aren't being factored in when individuals were completing the survey. Cars would surely make up the bulk of physical wealth.

@peacepage

2 жыл бұрын

U have no wealth mate, financial education is crucial. Why do need to own expensive car when u can't afford? If I were u I would buy a cheap with cash and would invest every month rather than paying monthly for a car.

@samiosmith

Жыл бұрын

@@EdmundBaileyUK something I struggle to comprehend - the weird obsession in the UK to show off physical wealth - particularly when is comes to cars. I wouldn't buy into self reported wealth when the vast majority of the country finances cars, often beyond their level of means! I would hazard a guess a large amount of physical wealth in cars is not reported accurately.

@shaun7638

5 ай бұрын

​@@peacepageread the same and thought that alsk,Why drive a 30k and have so little.

@cropduster8798

2 ай бұрын

@@EdmundBaileyUK yes and people tend to believe they own them when they have a loan. Same goes for property. It belongs to the bank until that last mortgage payment.

Interesting. Thanks.

@EdmundBaileyUK

2 жыл бұрын

Thanks for watching!

Interesting

Those private pension numbers look very high compared to other sources that talk about this.

Interesting stuff as it is human nature to compare ourselves to each other, however when making a retirement decision how much disposable income you are targeting is the place to begin from, we are all different and money doesn't buy happiness:)

@EdmundBaileyUK

2 жыл бұрын

Very true!!

Be very skeptical of averages, if one person has a million quid and 9 others have absolutely nothing then the average savings for that group is £100,000 obviously and that is also obviously rubbish. Good video.

@samiosmith

Жыл бұрын

exactly this - whilst it's interesting.. the video/averages are a bit misleading and somewhat disheartening to be honest. I would be hesitant comparing yourself with the average household wealth by age.

@BaileyMxX

4 ай бұрын

Hence why he used median. The median for your example would be 0.

Interesting video Ed, I have a couple of questions... Would second homes and buy to let properties be included in property wealth or is it just primary residences that appear in the property wealth column? Also is the rightmost column intneded to be the total of all the other cells in that row?

@EdmundBaileyUK

2 жыл бұрын

Thanks Mike, hope this finds you well!! Yes wealth is all self reported properties, so in theory should include buy to let, secondary homes and home overseas. Sorry, yes the column on the right is the total of the cells in the row. It wont be exact due to rounding but should be close.

@Country_Gent

2 жыл бұрын

I suggest including the equity you own in any property in your net worth calculation

@EdmundBaileyUK

2 жыл бұрын

@@Country_Gent Agreed!

26 and i have below half the wealth for my age, might as well change the variable of age, shortening it so I won't have to deal with debts when I absolutely can't work anymore

Must admit, I am a little baffled by the very low property wealth values. Surely when you reach retirement age (or long before) one's mortgage debt is paid off? All said and done I'm well above median and average values, but to be honest I don't feel wealthy!

I think the jump seem between 35-39 and 40-44 could be down to that age group already having established careers when the 2008 financial crash happened. Many in the 35-39 age group had a delayed start due to this

@EdmundBaileyUK

2 жыл бұрын

Yes seems reasonable, the jump is too significant for there not to be some specific reason behind it.

For a supposedly wealthy country a lot of people will be on the breadline on retirement, especially the single ones given the medium income at +65. Not much to show for +35 yrs of working. Realistically, they can't sell their property so they've about £900 from state pension and about £650 in private giving ~ £1300 net p/m.

@shaun7638

5 ай бұрын

What does Private giving mean...

@cropduster8798

2 ай бұрын

@@shaun7638 there should be a comma or full stop after the word private.

I will be 70 years in 2023. I have my own house worth about £500k, own car fairly new. I have maximum state pension + £1000 per month personal pension. Until this winter I have felt reasonably comfortable but with soaring energy prices + fact that my energy supplier had only been charging me £67 per month, due to overpayment on my part, the corrected t to £322 per month starting December. I had signed two year deal with them of £191 per month in June 2022 so having reminded them of that, this is what I am now paying but very uneasy re all rising costs.

@phil2443

8 ай бұрын

24K a year is good for you. Why not downsize your property and bank 200k and go and enjoy what's left of you life? Go on do it!!! 😀You only live once! And your energy costs would fall as well!

I (35/m/north) need to be competing with median couples since I live by myself. I'm not far off but I'm not looking forward to single life as a pensioner.

My understanding of the word "average" is that it could mean "mean, median or mode". When most people say average, they mean "mean". Thought it was worth clarifying. It would be interesting to see modal values since that's what most people have. These numbers seem crazy. I don't know if anyone in my life with these sums of money! A 20 year old with £15k cash?!

@EdmundBaileyUK

11 күн бұрын

Agreed Average is the generic term encompassing all three types of calculation. However, in general average as a term is better understood vs mean. No, cash for that age category via median is £200.

Thanks and wish nice weekend 🎩 off

How would you calculate the 'value' or wealth of occupational pension DB schemes? I'm 60, early retired and am already in receipt of £12.5k of occupational pensions. Would you use a 25x multiplier on annual income for example or another number?

@EdmundBaileyUK

2 жыл бұрын

Absolutely, the simplest is 20 times for those not in payment and 25 times those in payment.

@pjay3028

2 жыл бұрын

Did you say DB pensions are excluded from the figures? If so that's surely a very significant factor that has been overlooked.

@EdmundBaileyUK

2 жыл бұрын

Thanks and correct they are not included but I don't believe it was an oversight but was likely intentional of the ONS to not include it. The value of a DB scheme is really in the income that it generates and there are measures you can use to value it e.g. multiples or CETV but in reality there is no specific pot of money as such, it would in effect be similar to including the state pension... which you may or may not receive the full value of depending on how long you live.

@pjay3028

2 жыл бұрын

@@EdmundBaileyUK but the money paid in by the individual is a significant amount and would otherwise have been used to amass savings or other investments/assets that would be counted in the calculation, so to totally ignore it seems to skew the figures significantly?

@EdmundBaileyUK

2 жыл бұрын

Approx £4bn gets paid into DC and around £3bn goes into DB which is obviously declining figure as more of those schemes close. So yes it would have an impact on the pension wealth figure if you included those but the numbers would be heavily skewed as the majority of individuals are in DC.

Having read through the comments I have one main comment. You can't bank on your pension money being there the way things are going so prepare accordingly.

@wizzyno1566

2 ай бұрын

And how would you do that? If your pension is gone it basically means everything has collapsed so you'd be fucked regardless if how you "prepared".

@cropduster8798

2 ай бұрын

@@wizzyno1566 Read The Great Taking.

@chesshooligan1282

Ай бұрын

Collapsed? Not necessarily. It could be something as simple as the next generation decide not to pay off the gigantic national debt as they never spent that money, leaving the previous generation -- that is, you -- with no pension money. You voted yourself some money and then passed the bill on to them. They have every moral right to ignore that bill.

Physical wealth seems very high tbh, probably people over estimate what they have.

How has this been calculated? I would calculate using assets and subtract debts to get a total wealth. My family has a networth of around 60-80k without me logging in and checking everything out.

@EdmundBaileyUK

2 жыл бұрын

Thanks Paul. Yes the property wealth is net subtracting off of the mortgage. However the savings is gross, without subtracting any credit card or loans… as the ONS calculates it on that basis.

I'm surprised by the levels of 'physical' wealth. I'm sure there are inaccuracies in the way this has been calculated - the figures just seem too high. As regards the others, the 'average' implies the mean, which distorts everything upwards by the pull of the richest people, and therefore does not reflect the majority of the population living outside London and the south-east. The 'median' is much closer to reality for the bulk of the country, sadly.

@EdmundBaileyUK

2 жыл бұрын

Thanks for the comment. Yes physical assets look high but are self reported so inevitably the value individuals place on those is probably on the higher side.

Scary to see over 50% of people in their mid/late twenties with financial wealth in the negative. Actually thought that was the most shocking statistic out of them all.

@EdmundBaileyUK

2 жыл бұрын

Yeah its incredibly difficult for them to buy a property and I dread to think that position has only gotten worse with property price increases and a cost of living increase.

@edwardkenworthy7013

2 жыл бұрын

I'd guess this is down to student loans, compounded by the useless degrees they incurred the debt for.

@tancreddehauteville764

2 жыл бұрын

Not shocking at all. Until I was in my early 30s my financial wealth was just a few thousand, and as a renter I had zero property wealth and tiny amounts in my pension. At 55 my overall personal net worth is now around £900k.

We're both 62 and use our debit cards to keep the bank paying for everything until payday. £18k in savings accounts. Over £1 million (£60k left to pay off 3 mortgages) in several properties - rental incomes - all acquired as a couple, having both gone to the same council estate comprehensive. ❤ Planning to sell off our small primary residence in 2026/7 to create a lump sum pension, to add to our work and state pensions and move into one of our larger rental properties. Money can't barmy love 😘🎉.

This is quite a depressing view of the typical finances of our fellow citizens. I'm 34. A working class lad from the North East. I have about £69k in my pension, about £65k of equity in my house, and about £24k in savings (although I also have a £7k balance on a credit card, it's interest free for another few months, and it will be paid off in full prior to the zero percent period ending). How are so many so far behind?! Could it be to do with the physical wealth column? I dont seem to have as much "wealth" locked up in those things.

@shaun7638

5 ай бұрын

Interesting reading your Situation etc,You are doing ok really and in 10 years time it shall seem easy and you shall still be reasonably youngish..

Going to come back here every year to see how I compare. At 37 equity in home = £300k. Pension £80k. LISA/ISA = £18k. Cash = £40k (but £20k ear marked for wedding so in reality it’s £20k). Car/fixtures and fittings I ignore. Debt: £1k interest fee phone purchase.

Can you provide your tables and exactly the links you used to put the tables together? I tried to work it out what you have done, but I can't.

@isthereanyname

2 жыл бұрын

Oh actually it's largely information from www.nimblefins.co.uk/savings-accounts/average-household-savings-uk with a bit from www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2018tomarch2020

@EdmundBaileyUK

2 жыл бұрын

Thanks I think I can link the excel spreadsheets but I haven’t done that before. But it’s the ONS data, so all of the numbers are available on their website from the wealth survey.

I am 59 (single) my wife died 4 years ago and I get her Tesco pension @ £22699.04 gross per year, I also get a HM forces pension @ £19080.35 gross I get these now, both pensions go up by Sept CPI with the Tesco one going up to a max of 5%, so basically I get £41779.39 gross per year now I also still work although more part time. For the point of calculation when listening to people say how much their pension pot is worth, how would I calculate this?

@thetreeoflife3452

3 ай бұрын

Take your total annual pension and multiply by 25 gives your theoretical pension pot.

@ianc64

3 ай бұрын

@@thetreeoflife3452 thank you

Shocking contrast between average and median, but not unexpected.

@EdmundBaileyUK

2 жыл бұрын

Yes the inequality in terms of extreme versus median wealth is very noticeable.

38 net wealth 1.2 million, onwards and upwards

I got 200k in my house hoping to take equity out abt 100k and invest on property.

The total in the median wealth template is more than the total of all the types of wealth, how does that work?

@EdmundBaileyUK

2 жыл бұрын

Thanks Craig. For the averages the difference is rounding but for the medians the total wealth will not equal the total of the medians. This is because in math the sum of the medians does not equal the median of the sums. Hope that makes sense.

Hope everything is ok ..have not seen your content for a while .

Apologies if I missed something but the "Total Wealth" column doesn't equal the sum of the other 4 columns is there some other asset not included?

@EdmundBaileyUK

2 жыл бұрын

Thanks for the comment. They should be close but not exact due to rounding.

@steves7468

2 жыл бұрын

@@EdmundBaileyUK some of the older ranges have over a £100k difference?

@EdmundBaileyUK

2 жыл бұрын

Thanks. For the averages the difference is rounding but for the medians the total wealth will not equal the total of the medians. This is because in math the sum of the medians does not equal the median of the sums. Hope that makes sense.

@steves7468

2 жыл бұрын

@@EdmundBaileyUK thanks for clarifying.. really love the videos, keep them coming :)

@EdmundBaileyUK

2 жыл бұрын

Thanks 🙏 Really appreciate that!! Hard to know sometimes whether anyone will watch them or not!

Over what time frames? Your saying numbers but not explaining time period? Are these numbers for the year? Lifetime? E.g you say saving rate…is this the amount at the time of survey or is this per year?

@EdmundBaileyUK

2 жыл бұрын

Thanks for the comment. It should be shown at the start, it’s the ONS survey that was conducted from 2018 to 2020. So it’s a moment in time when the survey was conducted.

This is very misleading. You keep referring to state pensions of circa 10k per individual even for households (I assume couples) of 50 years plus. But you can't access that until you are at least 66.

@EdmundBaileyUK

2 жыл бұрын

Thanks and sorry to read you think it is misleading which was not my intention at all. It was simply to give a very broad indication of what someone could potentially derive from their private pension in addition to what that would look like with two state pensions on top e.g. for a couple. This videos focus is about total wealth as opposed to income. My other videos go into far more detail on when and how pension income can be taken. It sounds like from your comment that i should have been far clearer that this was a very rough indication of total pension incomes or simply not included it. Thanks for the feedback and I'm sorry you didn't like the video.

I thought the mean was depressing until you showed the Median.

@AgileSnowWeasel

5 ай бұрын

It actually shows the massive inequality in the UK starkly. If the median was closer to the average, then things would be more equitable.

I can’t understand why you’d bother have much in savings if you have a mortgage or other interest accruing debt? Sure, I could have £100k sat in a savings account/in stocks and shares but then it’d come out of my equity

36, net income 2,495. After all bills and a 580 mortgage, I have around 1250-1300 left depending on food bill. I pot away a grand every month and use 250-300 on whatever I want. If I don't use it, it goes in to savings. Car was paid with cash, about 7k in value. 60k deposit on my place, only been here 2 years with a 190k mortgage. No credit debt, no debt anywhere outside my mortgage. I have just under 30k in LISAs and ISAs and invested in funds compounding, with a year of bills on easy access in low interest. Feel like I'm in the top 10% of people or something as numbers I see for my age are so low.

@phil2443

8 ай бұрын

Your doing well. Pay the mortgage off as quick as you can and buy some bitcoin. You will then be retired happily within the next 10-15 years!! Good Luck!

Thank you for this, much appreciated. Can you tell me what would happen to my NHS pension if, at 57 years old (and 35 years full time NHS), I decided to work part time e.g. 3 days per week? I opted to remain in the 1995 section, though understand that from July this year I will be contributing to the new CARE pension system (plus have the 7 yrs 'remedy' choice). If the 1995 section is 'the best year from the last 3 years worked' and I work 3/5 days, would my pension end up reduced to 3/5?

Slightly confused. The totals for medium household wealth is great than the preceding columns?

@EdmundBaileyUK

2 жыл бұрын

Thanks. For the averages the difference is rounding but for the medians the total wealth will not equal the total of the medians. This is because in maths the sum of the medians does not equal the median of the sums. Hope that makes sense.

how the f*** physical wealth is so high for everyone? Worn out cloths, old version of Xbox and used furniture do not cost anything to be honest. Do people own Rembrandt paintings?

@EdmundBaileyUK

2 ай бұрын

Cars make up the largest chunk of that amount.

@chesshooligan1282

Ай бұрын

​@@EdmundBaileyUKStill hard to believe the median 60 year old has a car worth 45 grand second hand, because second hand couches, microwave ovens, and fridges are worth virtually nothing. This makes me think these figures are inflated. Perhaps only people with significant wealth who feel good about their finances bother to answer, or perhaps many people lie. I've seen other sources that put you in the top 10 per cent with a net worth of half a million.

I suspect these figures are very optimistic, how accurate are they really? I live in what you call a “wealthy area” and I know a lot of people with not much assets at all to their name, mortgaged up to maximum and barely scraping by as money is wasted on cars, holidays and luxury items like clothes, champagne you name it. I dread to think what people on the average £30k salary manage to scrape together in a lifetime, usually not much at all. I hear even the food banks can’t get enough food as even the well off people now struggle to give like they used to. In our household we have been careful with money for many years, first now when we are mid 50’s we have treated ourself with kitchen extension, better cars, furniture etc and we have had very good salaries the last 15-20 years. I think a lot of british people will struggle a lot the next ten years as the government have decided to hop on the “fix the global warming” scam which will result in economical disaster for the all western countries.

@cropduster8798

2 ай бұрын

Hope you've got some precious metals to protect that wealth.

The numbers in the rows don't add up to the total? Is that right?

@EdmundBaileyUK

5 ай бұрын

Thanks. For the averages the difference is rounding but for the medians the total wealth will not equal the total of the medians. This is because in maths the sum of the medians does not equal the median of the sums. Hope that makes sense.

@rossMIE

5 ай бұрын

Thanks make sense 👍

Americans include pension accounts like ROTH IRAs as a part of their net worth. Should Britons include pensions in our net worth?

@cropduster8798

2 ай бұрын

I wouldn't because you don't know if it will be there when you retire. The collapse of commercial real estate will bankrupt the pension companies because it's where they mostly invest.

I'm 36 and what on average is the net worth for a 36 year old?

@callumwright2085

6 ай бұрын

About £86k minus debts & mortgages etc. £86k is the total of physical, property, private pension and financial wealth.

You don’t receive state pension in the 55 - 59 age range

@EdmundBaileyUK

2 жыл бұрын

Yes that’s correct. It’s based on age but from 66 onwards.

Fat tailed distribution curves make average meaningless. Median is the right approach.

There's not many people my age with a net worth of a million quid.

How do 20 year old have physical wealth?

@EdmundBaileyUK

2 ай бұрын

Sure, the age bracket is 20-24 and the bulk of this will be vehicles.

You Brits are better at saving than we Americans but it still looks like sadly not enough. There are going to be a lot of struggling retirees on both sides of the Atlantic…

@EdmundBaileyUK

2 жыл бұрын

Thanks Marc! 🙏 And yes I’d agree with that… there’s definitely some similarities in that respect between our countries…

I have just reached 16 years old and I've only saved £216 billion .

@phil2443

8 ай бұрын

You need to get your finger out and buy some bitcoin!!!!

@valentin1808

8 ай бұрын

@@phil2443 yes but you only need to get your finger out whether you buy or not.

Wow, not good reading for most people, i'd consider myself "just" on target for retirement thanks to aggressive savings. I'm concerned come retirement a lot of these folk will have to live on rice and beans

@EdmundBaileyUK

2 жыл бұрын

I find the numbers incredibly interesting and it does paint a bit of a picture of the UK in terms of assets and savings. Worrying that the position will likely have become harder with the cost of living.

850k net worth and early retire abroad. Make your hard earned money work harder for you, it wont happen in the UK.

Oh dear....

Scary stuff that the median 25-29 year old has " no savings ". I thought they were all saving to buy a house . Very interesting.

@EdmundBaileyUK

2 жыл бұрын

Thanks John T. It is… I think some have given up. 🤔

@tancreddehauteville764

2 жыл бұрын

How can they save when it all goes in rent? I had to rely on my parents and in-laws to buy.

@wesleylang172

2 жыл бұрын

I'd say it's a bit hard to save up when the median salary is spending anything from 30-45% on just rent

@tancreddehauteville764

2 жыл бұрын

@@wesleylang172 I only had a decent amount of savings when I was 31. Took me ten years of work to get a few thousand saved up.

As a single, working, male, I would say that I'm doing only slightly better than the average heroin addict who lives on the street.

The kick in the teeth for this video is the WEF states ....." by 2030 you'll own nothing"

@EdmundBaileyUK

2 жыл бұрын

I saw that! An interesting prediction....

@JG-fv9bv

2 жыл бұрын

Its especially concerning when yoj look into the WEF plans for global Digital ID Passports, Cashless Society, Central Bank Digital Currencies and Chinese CCP style Social Credit Score system based on peoples Carbon Usage. Also there the comment by Mark Carney ( ex Govenor of the Bank of England ) ... "any new agreement on combating climate change must be centred around a new financial system" made at COP26 ..... and when you find out he's heading the organisation the WEF are using to usher in the New system

Invest to retire in your twenties, the rest is up to you