TCFP founder, Jeremy Askew, was 50 last week. What better way to celebrate than look back at some interesting facts and figures?
In 1972…..
- The average UK salary was £1,612 pa, in 2022 it is £31,825 – a total increase of 1,874%, or an average 6.15% pa increase.
- Petrol cost 9.5p per litre, compared to about 185p now – a total increase of 1,847%, or an average 6.12% pa increase.
- There were 3.84 billion humans on the planet, today there are around 8 billion today – up 108% in total, or 1.48% pa on average.
- The average car cost £1,775, compared to about £23,000 today – up 1,195% in total, or 5.26% pa on average.
- A pint cost 33p, compared to £4 today – a total increase of 1,112% or 5.12% pa on average.
- The cinema cost 88p, today it is around £8 on average – a total increase of 809% or 4.51% pa on average.
UK inflation averaged 4.7% pa over the last 50 years according to the Bank of England.
The good news is that average earnings grew by more than that amount.
The price increases above are a salutary reminder of what can happen over the 30+ years of retirement we can all expect. Your retirement income needs to at least match those increases, lest you become poorer.
It also means your pension pot, now and in retirement, must grow quicker than inflation to maintain your financial independence and sense of security.
Alas, many of the investment strategies we see are unlikely to achieve this. However, there is a simple, proven and low-cost way of achieving growth greater than inflation.