Are you rich? The chances are that even if you are, you don’t feel it! Total wealth now stands at a record £12.8 trillion* (e.g. £13million,million).
Most people would immediately say that the UK’s wealth is held in property and to some extent this is true. However, what is reassuring to me as an adviser, is that the most money is held in pensions. At first glance this is great, however, once I has processed it, it did start to make me worry. How much of this money is being looked after well? How much of it is languishing in poorly performing and/or highly charging investments? If you feel you might be in this bracket, just call up your pension providers and ask them to send you the fact sheets for what you are in and a brochure of all the different investments that you can be in.
So back to the questions – are you rich?
To be in the top decile in terms of wealth in the UK you need to have assets of more than £671,200 (this includes the value of your home, after taking off the value of your mortgage). Now we all need a goal, perhaps being in the wealthiest 10% is not a well thought through personalised goal, but it did get me thinking about what would you need to put away each month into an investment to achieve it by 60?
Assuming the performance on the portfolio is 5% gross, here is what you would need to do each month, depending on your age, to save £671,200 by age 60:
|Age Now||Monthly Investment|
So the younger you are perhaps the more achievable this table looks and the older you are, the scarier it looks! Either way, the key things to conclude are:
- Delay is not your friend! Start investing as soon as you can (assuming you have a cash buffer sorted).
- Review what you already have to make sure that it is working hard for you.
- If the figures in the table are just way too much for you to save, squirrel away whatever you can.
- Do not underestimate the “value” of your pension – look after it.
Let me know how you get on and if this blog inspires you to invest more!
Lots of Love
Miss Lolly xx
Please remember – the value of your investments can go down as well as up, so you could get back less than you invested