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Do you hope for a millionaire lifestyle?
Young British workers are planning millionaire lifestyles when they reach their 40s, but their dreams are based on little more than hope.
That is the conclusion of a new report by ING Direct bank, which launched an investigation into the plans of the nation's 21 to 35-year-olds.
The online bank discovered that this generation has a vision of a life of luxury cars (24 per cent), holiday homes in foreign lands (20 per cent), servants (27 per cent), and regular beauty treatment and plastic surgery (29 per cent) - but is basing this vision on highly unrealistic expectations of pay rises.
The youth of today are expecting pay rises of 150 per cent, taking their average earnings from £20,099 to £50,000 a year, to fund their life of luxury - but in reality this is highly unlikely to happen.
Official predictions by the Office of National Statistics point out that it is far more likely that this group will be earning a meagre £25,000 a year in their 40s.
"Unfortunately, today's young adults are in for a rude awakening as there is a huge gap between their expectations and the salaries they will actually be earning and they show no sign of reducing expenditure now in order to save for later in life," said ING Direct chief executive Lindsay Sinclair.
"Less than a quarter of young adults will look to savings to fund their future lifestyles. Rather, close to seven in ten career starters plan to pay for their expected lifestyles with huge salary increases - an unrealistic expectation.
"Our report clearly highlights the need for the younger generation to get serious about saving if they want to achieve their dreams."
That is the conclusion of a new report by ING Direct bank, which launched an investigation into the plans of the nation's 21 to 35-year-olds.
The online bank discovered that this generation has a vision of a life of luxury cars (24 per cent), holiday homes in foreign lands (20 per cent), servants (27 per cent), and regular beauty treatment and plastic surgery (29 per cent) - but is basing this vision on highly unrealistic expectations of pay rises.
The youth of today are expecting pay rises of 150 per cent, taking their average earnings from £20,099 to £50,000 a year, to fund their life of luxury - but in reality this is highly unlikely to happen.
Official predictions by the Office of National Statistics point out that it is far more likely that this group will be earning a meagre £25,000 a year in their 40s.
"Unfortunately, today's young adults are in for a rude awakening as there is a huge gap between their expectations and the salaries they will actually be earning and they show no sign of reducing expenditure now in order to save for later in life," said ING Direct chief executive Lindsay Sinclair.
"Less than a quarter of young adults will look to savings to fund their future lifestyles. Rather, close to seven in ten career starters plan to pay for their expected lifestyles with huge salary increases - an unrealistic expectation.
"Our report clearly highlights the need for the younger generation to get serious about saving if they want to achieve their dreams."
posted by Bruce Wayne at 1:50 PM
Do you hope for a millionaire lifestyle?
5 Comments:
When I was much younger, the thought of being a millionaire was something that I couldn't really conceive. But inflation makes a million less than what it used to be (but still quite enough for me to live on) and the chances are that I will be one when all my assets are included (the upside of rising housing prices).
I don't think I want to be a millionaire at all, but become better financially secure.
$850,000 would do just fine all I have to do is invest it wisely.
Not sure if I will ever become a millionaire or not but like others have said a million sure isnt what it used to be. Maybe when the kids are grown & the house is paid for & I go back to work full time but then it wont be of much use I mean I would rather have it while raising kids ya know!!
I have aggressive retirement plans. I want to be able to walk away from any paying job by the time I'm 50. You just have to get aggressive about it. But if it's not something you really want then that's certainly fine too. Whatever floats your boat -- or yacht!
A million pounds does not go as far as it used to, with people now needing nearly £3m to lead a millionaire's lifestyle, new research suggests.
Private bank Coutts & Co says the value of £1m has fallen so much in the last 25 years that it does not now afford a truly luxurious lifestyle.
People now needed £2.6m to enjoy all the trappings of wealth, it said.
Property price rises of more than 575% were the main reason for £1m going much less further than it used to, it added.
The bank found that, between 2001 and 2004, the number of UK millionaires had soared by more than 80% to reach 425,000, thanks to a 64% house price jump.
Chief executive Sarah Deaves said that while £1m would provide a millionaire's lifestyle "a few times over" 25 years ago, it would now "only afford a small portion of the trappings".
"One million pounds is obviously still a sizeable amount of money, which, if invested correctly, can afford a high standard of living and provide financial security in later life," she added.
"A millionaire used to be someone who was seen as super-wealthy, a person who didn't have to work if they chose not to, and who was able to live a life of luxury simply by having £1m in cash or assets."
'Wales cheapest'
The bank considers a millionaire's lifestyle as including a luxury five-bedroomed house with staff, an apartment, two luxury cars, a yacht in the south of France and two luxury holidays a year.
But, despite the bank's research, its own survey found that 65% of people would immediately quit their job if they won £1m.
It also said that more than half of those questioned thought they might become millionaires during their lifetime.
Londoners would need the most cash - £3.47m - to support a millionaire's lifestyle compared with just £451,000 to support the same lifestyle in 1980.
Wales would be the cheapest region in which to live the same lavish lifestyle with £2.2m needed, according to the research.
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