Tag Archives: salary

Working adults in their thirties are on track to be the wealthiest generation

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Working adults in their thirties are on track to be the wealthiest generation – after research found they earn the highest salary, save more and have the most disposable income.

A study into how much money the average person ‘has’ in each decade of their life revealed those aged 30 to 39 earn an average of £32,561 a year, and typically save £309 a month.

They also have the most disposable income – an average of £382 a month – and have less debt than 50-somethings – £7,196 compared to £8,315.

The study of 2,000 adults, commissioned by Equity Release Supermarket, also found that those in their thirties have an average of £10,326 stored away in savings.

Mark Gregory, founder and CEO of Equity Release Supermarket, said: “Our study revealed that while those in their thirties are impressively thrifty in their approach to money and savings, adults aged 40-49 who have had more time to save are slogging along with just £11,039.

“We know first-hand that many parents and grandparents would like to support their younger family members in their later life, whether that be with university fees, property, or other financial support.

“However, the research highlights that this may not be possible for several people in their 40s, 50s and 60s, which is where equity release could come into play as one potential solution.”

The study also found that regardless of how much is in the bank, the ability to be ‘good’ with money seems to improve with age.

Of those aged 60 and over, eight in 10 believe they are good at handling their money compared to 69 per cent of those in their twenties and 73 per cent of people in their thirties.

But 59 per cent of 20-somethings reckon they are good at saving, compared to 61 per cent of adults aged 60+.

The most common reasons people aged 60 and over believe they have good money habits simply comes from knowing how much is in their account (68 per cent) and knowing exactly where they spend their money (72 per cent).

It also emerged that when it comes to breaking down exactly what each age group splashes their cash on,  those in their twenties are most likely to spend their money on clothes, streaming services, takeaways and going out for dinner or drinks.

But adults aged 50 and over are more likely to be forking out for their energy bills, paying for petrol, the weekly food shop and insurance.

Despite having a healthy attitude towards finances, 53 per cent of those aged 60 and over still worry about money.

More than four in 10 put it down to the fact that they don’t want to get into debt, and a fifth agreed it’s because it’s one of the most stressful things in life.

Although a quarter worry about their income and outgoings because they enjoy living a comfortable lifestyle, and don’t want that to change.

But three in four adults aged 60+ believe they will always have some worries about money, no matter how much or little they actually have.

And 77 per cent admitted they find themselves fretting over how much they have pocketed for their retirement, according to the OnePoll findings.

Half of people aged 60 and above have money for the future put away in their pension and cash savings, while a fifth are relying on investments to keep them going in later life, and 14 per cent are considering downsizing.

Mark Gregory, from Equity Release Supermarket, added: “You spend your entire life building up savings – whether that’s in your pension, cash savings or investments like property – just so you can relax and enjoy your later life retirement years.

“But that doesn’t stop people worrying about money throughout this entire cycle.

“There are plenty of ways to give yourself that added bit of reassurance and equity release is just one option.

“Many people don’t understand the features and benefits of equity release as a possible solution to support retirement, enabling them to subsequently fulfil their financial wishes.

“When we’ve worked so hard to put money away, it’s always good to know there are other options available.

“While it’s not the only option to raise capital for an enhanced retirement, equity release could be beneficial and should always be considered with the right financial advice.”

Breakdown of ‘wealth’ by decade:

Current cash savings

20s – £7,232.11

30s – £10,326.33

40s – £11,039.59

50s – £16,704.68

60+ – £20,588.30

Salary

20s – £23,920.13

30s – £32,561.51

40s – £32,175.52

50s – £28,771.27

60+ – £25,771.91

Debt

20s – £15,950.99

30s – £7,196.98

40s – £7,017.62

50s – £8,315.31

60+ – £4,654.33

Disposable income per month

20s – £269.49

30s – £382.85

40s – £364.25

50s – £362.64

60+ – £382.58

Money put away in savings each month

20s – £243.73

30s – £309.36

40s – £282.28

50s – £259.60

60+ – £264.17

Only 2% of Britons Know How Rich They Really Are

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moneyWe are not sure if you saw Channel 4’s How Rich Are You Show last night but it was interesting. Take the quiz and find out how rich or poor you are below. The poll is also an eye-opener.

In a new poll commissioned by Channel 4, people in the UK were asked to guess how their income compared with the rest of the country’s, and then answer a series of questions to calculate the true result. Only 2% of the people surveyed guessed correctly.

The poll was commissioned to accompany How Rich Are You (1 x60) which airs at 8pm on the 10th November. Presented by Richard Bacon, this one-off special will show each of us where we stand in the great money map of Britain – and what that position means. With the help of leading experts, a studio audience and individual case studies, the show builds up a shocking and surprising portrait of the country that is now – officially – the most unequal in Europe.

Alongside the programme, the channel has launched a website app which will enable every viewer to take the ‘How Rich Are You’ test at home. Visitors to channel4.com/howrichareyou can answer a set of simple questions to determine if they are as rich or as poor as they think they are. The data for the app has been provided by the Institute for Fiscal Studies.

As many as 67% of the people surveyed underestimated their income compared by more than 10%, indicating a serious lack of understanding as to the economic state of the nation. Only 7% of people overestimated their income compared to the UK – but nobody overestimated by more than 10%. Just 2% correctly estimated their level of income vs the UK population.

The survey reveals that despite the struggles of the current economic climate, 75% of adults say that they manage financially, with 16% stating they struggle to get by.

Despite this there is still a bleak picture of life in 2014, as 61% feel that life in Britain has worsened over the last 20 years. Just 13% feel that life has improved.

The survey shed light on our embarrassment at talking about money. It revealed that 31% of adults surveyed would not be happy to discuss how much money they earn with family and friends, while 19% are not sure how they feel about it.

Interestingly, it is younger people who are more willing to discuss finances, with 60% of those aged 16-24 happy to talk about how much money they make.

When asked about inequality across the UK, the majority of adults (84%) think that the wealthy should pay higher taxes.

Those that feel they have enough money in their household (rating themselves as ‘well off’) feel less strongly on this matter, but still display strong agreement at 73%.

The survey also asked people about average salaries of other professions including a nurse, MP, care worker and average CEO. The results were fascinating with 70% of people overestimating the salaries of a CEO and more than half overestimating the salaries of an MP.

  • An average Nurse in the UK earns just over £26,000. Half of the adults that we spoke to correctly chose this amount, a quarter over estimated how much they earn, while a further quarter under-estimated their wage. Interestingly, those who were struggling in their household underestimated a nurse’s wage the most, while those that were well off overestimated their wage the most.
  • Just 27% of adults correctly knew an MPs current wage of £66,400, while a further 31% thought that MPs were on their soon to be higher wage of £72,000. A further 26% thought that they were paid nearly £20,000 more than their current wage.
  • An average care worker in the UK earns just under £13,000, 42% of adults correctly chose their wage. 50% thought that their earnings were at least 30% higher.
  • An average CEO in the UK earns an annual income of just under £118,000. Just 13% of the adults we spoke to correctly picked this amount, the majority (70%) thought their wage was significantly higher.

Dr Fazia Shaheen, Economist and expert on How Rich Are You? commented: “These numbers serve as a reminder of how little we understand about each other’s lives. We are failing to see the bigger picture – too busy trying to get by on our own wages to notice the growing gap between the very rich and the rest of us.”

John Hay, Commissioning Editor for Channel 4 commented: ““I’m convinced that years from now we will look back on the growing gap between rich and poor as the most significant issue of our age, and I think there’s a real hunger to understand it better (as well as to find out how much our neighbours earn). Richard and the team at Electric Ray have a gift for making important television that doesn’t feel like homework, so I hope this will be both revelatory and addictive viewing.”

Take the quiz here.