More than one million pensioner households in the UK now have total wealth of more than £1m according to analysis by Prudential of the latest ONS data for 2010-2012.
That’s a rise of 69% compared with 2006-2008 when the number stood at just over 636,000.
This means that 11% of over-65 households now have total wealth of more than £1 million.
It also means that over-65s make up the greatest proportion of millionaires in the country as a whole.
Analysis
Prudential’s analysis found that the rise in the number of pensioner millionaires is thanks to:
- Bigger pension assets.
- An increase in the value of their savings and investments.
- A rise in the average value of property.
Pensions
The median value of private pension assets (excluding those who have no private pension provision) has increased.
It is now £82,300, up from £60,000 in 2006-2008.
The number of people who have some private pension wealth has also increased, to 76% from 73%.
Savings and investments
There has been considerable growth in savings and investments too.
19% of over-65 households now have savings and investments worth more than £100,000 – an increase from 15% in 2006-2008.
Property
In terms of bricks and mortar, average net property value for a retired couple is £210,000.
Only a slight increase from £200,000 in 2006-2008.
However, for single pensioners the figure has fallen slightly, to £165,000 from £170,000 in 2006-2008.
Non-millionaires
Prudential’s analysis also shows that at the other end of the spectrum, 12% of pensioner households are worth less than £40,000.
That’s a larger proportion than those who are millionaires (11%).
The analysis also shows that 12% have net savings and investments worth less than £500.
This should be the cause of much concern.
Our view
It will come as a surprise to many that pensions, savings and investments have accounted for more of the rise than property.
It underlines the importance of people saving as much as possible as early as possible in their working lives.
We specialise in pension, investment and retirement planning.
We have 20 years’ experience in helping people like you make the most of your money.
Why not drop us a line advice@www.townclosefp.co.uk or give us a ring 020 7993 4898.
Our initial consultation is both fee and obligation free.
Sources: http://www.pru.co.uk/pdf/presscentre/wealth-of-assets.pdf