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How Much Money You Should Have By Age (REAL DATA!)
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- Опубліковано 19 сер 2024
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This information is provided solely as an informational resource and should not be construed as investment advice or recommendations. Decisions regarding investment strategies, retirement timing, and other financial planning aspects constitute critical choices in one's lifetime and should never be taken lightly.
This information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific person, and may not be suitable for all individuals.
It is crucial to note that this information is not intended to form the primary basis for any investment decision. Always consult your own legal, tax, and/or investment advisor before making any decisions related to investment, taxation, estate planning, or financial considerations.
Contrary to the notion of "get rich" programs, success in financial matters often involves fundamental strategies, diligence, and time in the market. Conduct thorough research, make prudent choices.
Me and my wife both retired at 55 with no debt and everything paid for we don't chase new cars and posh holidays,we dont try to keep up with the joneses, just keep it simple. We have 2 allotments and its the best thing we have done to give us fulfillment in live it gives us a purpose to grow our own food and live of the land ,one bit of advice money isn't everything , it helps but you don't want to be the richest person in the grave yard ,just enjoy what's left of your life and keep it simple
This exactly this, thanks for sharing your story. In my late fifties now and have come to this realisation, after being signed off with work related stress.
😂Fame at last !
I am the Dave you referred to at the start of the video.
No offence was taken Neal and I’m not in any way disparaged… keep your excellent videos coming…. Love you guys.
Haha thanks Dave! Pleased you appreciated it.
I went through a financially brutal divorce in my 50’s - had to pay alimony, put a kid through college, and pay off all debts from a family business. At the end, all retirement and savings were cleaned out by age 58. Just as you say in your video - you can, and I did - put my head down, get to work, and claw my way back. Not completely, and I’ve ended up working longer than I planned - but, I now have a pretty secure retirement and I interspersed travel so that I didn’t just feel that I was working just to get to an age where my best years were behind me. It IS possible if you put your mind to it and get creative.
Fantastic and inspiring Dorothy! Thank you!
How is it possible? At that age
So why don't you tell us how you did it, as I don't see that's it's possible at that age.
@@star_man Brutally hard work. Multiple jobs. Sold my house and used the pittance I retained after paying off my ex, to seed my retirement. I now rent, drive a ten year old car and still work for myself part time at nearly seventy. But, I can travel when I want and have a secure retirement. “Stuff” is what ties us down. Get rid of it if you want your freedom.
hi I retired 3 years ago(55) with a decent DB pension, I paid of my mortgage @48 (house now worth £400k) and saved £550K in stocks and shares ISA. It can be done if you are on a fairly decent wage, as long as you don't want the flashiest car and buy new tech every update. Before retiring I had visited 68 countries and have a passion for ancient ruins/cities. Over the last 3 years I have visited 2 new countries (Uzbekistan and Turkmenistan) and revisited a couple of others.
Fantastic and inspiring. You know, Sarah and I were just talking yesterday about potentially visiting Turkmenistan, it looks a really interesting and unusual place to explore.
Nice to hear someone living out the plan I have. I'm mid 30's with a DB pension. Stocks and shares ISA and LISA with about £30k so far. I do worry about the massive reduction in taking the pension that early, probably more like 58 or 59 for me, unless I can get 500k into the ISA before that.
Its never too early to plan for retirement!
@@2GoRoam H, I found Turkmenistan interesting and the people friendly. Ashgabat the capital was a highlight with its buildings of white marble. Unfortunately most of the archaeological sites I visited ,such as old nisa and merv, were rather desolate being destroyed by the monguls and then more recently by earthquakes.
It seems the government is becoming more relaxed to tourism with less entry refusals.
That's awesome. What was your wage while you was working? That's a big factor on how much one can save.
@@deltaechomusicnh555 Had to look it up !!
In 2021 Salary of £61,000, £2,750 to Company pension, £4800 to AVCs, £20,000 to ISA and @9000 holidays. leaving @ £1000 a month to live on.
2020 was an odd year and after returning from isolation ( I flew back from Taiwan, South Korea and Thailand March 1st) I was offered 12 hour days - 6 days a week which boosted my pay from £61k to £110K of which £7k went into my AVC.
I’m in my 40s own 7 million worth of property, drive 4 sports cars, have a 10 bedroom stately home with swimming pool..blah, blah, blah…why are so many in the comments so obsessed with bragging about what they own. Congratulations for your individual success but life should be lived to your own means. The world is becoming obsessed with narcissism & people boasting about their wealth. Just live your own individual life & be happy. News flash, nobody cares & in 100 years from now it won’t matter as we’re all heading towards the same ultimate destination.
They are all lying bro, don't be so gullible!
If you send your life comparing yourself to everyone you will never be happy!
Create a budget, work out what you need in retirement and work towards the goal that achieves it. Easy to say and takes discipline to do....
Comparison is the thief of joy.
Well said Kevin!
Best comment here.
Best comment here
My friend earns £60,000 per year and she has zero savings / investments. I told her to sell her Mercedes and buy something less expensive and invest the difference into a pension. The government pension is £900 per month. I asked if she could live on £900 to which she replied my rent is £1,400 per month! Her attitude is live for today, tomorrow is not guaranteed! I explained that there is a 95% chance that she will reach retirement so she should sort out her private pension.
How old is she ?
@@andybellklas1678 37
Your friend is very common with her attitude to finances, investing and saving. I bumped into an old friend a few weeks back outside the supermarket. He’s now 59 years old and still working in the construction industry. He was telling me how his knees a shot, his back has gone, but he still has to work…openly admitted to me that he never really saved or put into a pension, and he has earned good money all his life……was still driving a Mercedes GLC though….absolute madness.
She will collect gov benefit.
You can't help her. She has to figure it out herself
We retired early leaving Australia earlier this year. Net worth is only one part of the equation. What matters is how much of your net worth you can get to become income producing. In my opinion on the numbers I've been crunching for years the only realistic option for many to retire is to cash in their house and other assets, live in lower cost of living countries and invest the money they have in things that will give them a better return than in their home western country.
Very sage advice. That certainly helps the money stretch a lot further.
Where did you go to? We’re currently looking at moving from the UK to Perth WA on an Aged Parent 864 Visa.
@@BoninBrighton, on the face of it my concern would be that you are simply exchanging one high cost of living country for another. We have setup a base in Thailand and also spend time for part of the year in eastern europe. Being flexible about where we can be is high on our priorities.
@@GeoArbitragers-hb3jz we have our son living in Perth so a long term strategy of us needing to live there 15 years before 0% inheritance tax kicks in. This will save 40% of IHT….
@@BoninBrighton, yes. Taxes are one of the major issues preventing people from being independent. There are probably a number of things you could do to avoid that like simply holding your assets outside the UK. When we first started our journey the thought that we would sell our house and be invested in other places was not even a consideration now we don't have anything in Australia and have real estate investments in three different countries all earning an amazing rental yields with much lower taxes and maintenence costs. THe further you go on the journey and more committed you become you find there are some great options out there across all the different things you worry about that you previously just felt comfortable with in the place you know.
Growing up in an ex-mining community I learnt the value of money the hard way. No silver spoon and the only thing I will ever inherit is debt. My wife does not work through choice, so we have the one income. In my early 30’s I decided that when ever I received a pay rise then I’d take half as pay and put the other half into my pension. E.g. if I got 4% one year then I’d increase my pension contribution by 2%. Now at 55 I have enough in my pension that, if I was to retire today and use the 4% rule, my net pension would be equal to my current net pay. The only thing stopping me is that I want to keep myself busy, so I’ve moved to a much less stressful job working for a charity.
Fantastic and this is a really inspiring story. Putting half that rise into your pension is taking the benefit of compounding to another level. Well done, appreciate you sharing.
You can’t inherit debt in the UK.
Working for a charity is more like a paid hobby
My wife is 33 and i'm 35. We have a net value of about £135k. We drive a modest car, own a house with a mortgage way below what we can afford. We invest 30% of our net monthly pay and use 15% to save for travels.
Good decisions on a financial level forms the foundation of wealth in experiences.
Excellent. You have your priorities right! Impressed! Keep it up.
Tax man will get you.
@@ispy3836 he gets us every year. Can't really avoid him. For now we're holding off paying extra on the mortgage because of the low interest rate. Main home equity is exempted from wealth tax though. So putting extra there is also a future option.
Saving for tomorrow is okay, but be gentle. You live today, so spend whatever you makes you happy. You better die happy, than rich.
Make a Budget
Budget for what "Makes you happy."
Be sure to pay all your bills
Stay out it Debt and
Put at least 15% of your income into retirement savings.
Mine is a plan for success
Yours is a plan for Disaster!
15% is a hell of a lot for most people.
My wife and I are 54 & 55 respectively and live in the Midwest of the US. We’re so glad to see your podcast back up and going…your informative data and accent can’t be matched! Like you said in your first podcast back from your absence…we don’t need a bunch of rehearsed and planned out choreography…just pass along your feedback straight from the camera and ad lib at leisure! We’ll keep watching as long as you’re loading video! I retired at 50 and my wife will retire at 57. We’ve always worked since our early teens and had a focused approach on always saving roughly half our income…we never veered from that approach…most assuredly quite tough those first three years, but got easier and easier as the years passed. We’ve never had a new car, new home and mostly acquired clothing and goods at second hand stores or garage sales. Now we have enough to never work again and both have guaranteed US government pensions to supplement our investments, IRAs and other passive income streams. If the young folks could just get it straight early on in their lives to set as much money back as they possibly can during their 35 working years, you’ll have yourself setup for the remaining 30-50 years…it’s not rocket science…just a little well planned discipline.
Excellent, you have both worked for what you have and took difficult decisions as you went along. Great work.
Thank you for your comment on this style of video, pleased that it is resonating with you.
The strange paradox here is that I feel the pressure more now, in my 30s with a[n effective] net worth (couple) of around £400k… than I ever did in my 20s with less than £10k!
For reference - Net worth components
- Home (£400k with 25% equity) = £100k
- Pensions (1x defined benefit, 1x defined contribution equivalent to nest egg of) = £250k
- Savings & non-pension investments = £50k
Showing HOW to achieve the lifestyle of travel in early retirement gives your channel more than just a pretty documentary.
Thank you Gina, we are hoping that the travel channel will show what we are able to do and this channel will show how to do it. Appreciate your comment.
I retired last Sept at 63. You Median figures made me feel a lot better than the Mean figures. I am not taking holidays or anything out of the ordinary at the moment but i am not working using my pensions etc to live and not work.
I prefer median statistics to averages. It gives you a better snapshot of real living conditions -- median home price; median salary; median taxes; median mortgage; median savings for retirement. . .
Absolutely!
Nice job Neil. Kudos to you and Sarah for doing your part to try and counter the insidious dark side of social media . I like both types of videos. Keep up the good work. There is an audience for the information you provide -both travel and financial. Keep marking the trail for.those that need it!
Thank you so much Scott. Really hoping that the splitting of our channels helps people go to the content they will enjoy more. Speak soon in Live Stream!
These types of videos are great, I’m 54 now & brought up from a single parent benefit assisted (& part time hard working mum). She struggled to make ends meet, we mainly lived off the cheap factory rejected food back then. Mum had no financial sense, other than wanting to own her own home (3 bed terraced) & only bought what she could pay for (no credit). But this basic approach instilled itself within me. I want my money to work for me & my family. Not to line other people’s (& tax man’s) pockets. I want good financial freedom possibilities in my 50’s. I have 2 kids (19/21), both working & fortunately they have the same financial approach. No matter what they earn, they will have bright financial futures with this attitude. Will probably appreciate luxuries much more as a result. Keep up the good (basic simple approach work). You have a new follower ❤
BRILLIANT! This is really inspiring. Certainly when you speak about your kids as in the world today there is so much about 'Show' and 'Bling' and they have clearly learnt from you what you have from your mum. You are winning at life and passing that on.
You are brilliant and we love having you here.
Hi Neil
Genuinely appreciate this type of video and thought. I’m 58 and in that troubled zone of should I retire, how much is enough etc.
Have spread sheets galore, understand my costs, budgets etc so what’s the problem right?
Well, I watch/listen to very good folk like yourself and understand better ‘Mean’ & ‘Median’ NET worth and … think I’m doing ok as the mortgage has just been paid off compared to the UK £250k .
However, NET worth inc your home value to me, is really only applicable if you intend to downsize. Many don’t if you like/cherish the family home. So it’s then all about pure Pension and Savings values and income from those (plus’s investments if you are lucky enough to have them!) against your plans in retirement ’v’ cost of living. I think many in the audience would appreciate thought/guidance outside of home value as this is the real day to day future living cost.
Thanks for what you do to help folks like me standing on the edge so to speak 😂 👍🏻
Don’t stand on theedge worrying if you have enough to retire… do it now.
Honestly mate you never know what’s around your corner so if you feel like you want to retire then don’t assign some arbitrary age number to when you do “jump”… go now whilst you can.
I retired age 54 with such a low pension pot it would keep most people awake at night 😅…. But my years of backpacking taught me that you don’t need a lot of money to live a decent life.
Fast forward 4 years and I’m the same age of you and Ill health that came out of the blue 7 weeks ago probably means getting to age 60 is doubtful.
Don’t wait, go now.
We know that feeling well Jason, hope we can help you in our forthcoming videos.
I left school at 15 yrs old l was in the bottom 5 all the way through school never bothered with education I started working for myself at 21 years and I definitely know I have done better than everyone in my class . Am 67 now and can honestly say I can do anything I choose buy anything I choose however I will say this the best things in life are free your health your wife and family.
37 years here, immigrant, came to the UK with £2k savings in 2008 worked ever since. Now have a 300k house with 50k remaining mortgage, pensions, ISAs and all. Always had more than just 1 job. The cost is no life, just grind and save.
Giving up 16 of your best years to grind? Was it worth it?
@@DreamClean what's the alternative? YOLO? Travel? Pubs? Crap? And then whine that I cannot afford a house and live payslip to payslip and hope that daddy government will come and save me and punish those dastardly greedy landlords? Thank you, I'd rather give up my 16 best years to then enjoy the next 40 best years in peace
@@viaceslavjanc3267 There is a HUGE middle ground that you are ignoring. I did the 3 jobs thing for 7 years in my early 20s. I've just turned 30. I've got £150k saved and invested. I still regret it personally.
@viaceslavjanc3267 compromise is important too.
@@nickwoodward3034 that's exactly what I am doing. Lifelong compromise. Ensure security while you at your top efficiency and energy, and then netflix and chill while everyone else is running around screaming
Currently save £850pm in S&S ISA and £3400pm into pension at 39 … I don’t see retirement as a possibility before 55 with an average lifestyle (3 bed house 1 car and a holiday abroad). Most younger people have no chance and will be working into their 70s. It’s sad what life has become. Slaves to the system.
The big unknown is your own heath and payment of social care late in life. You can lose all your savings paying for decent health care late in life, albeit I guess you cannot spend it on anything else. Unfortunately the health Car Insurance market collapsed some ten years ago, meanwhile I am not seeing any (UK) government being able to solve a 'fair' social care solution.
Work overseas with high exchange rate of your country and retire to the country with low cost of living
Me and my girlfriend saved up £100k deposit by the time I was 26 and she was 24. All while having a slightly higher than minimal wage job.
It can be done but you just need to make sacrifices and think about what matters the most.
Awesome
That's some going
Hello. Kier Starmer here - Don't get too comfortable, that house will be mine soon!
@@GeorgeAusters That’s great! Unfortunately too many people aren’t willing to make those sacrifices, but want the outcome of them.
@@travellinman382 We still did a lot of travelling etc but just drove paid for cars and didn’t buy anything that we didn’t need
Yeah you live at home with your parents.
Completely agree with the doom scrolling. Im 38, so ive grown up through some of my teenage years and then twenties, but i worry for the next generations even more.
Im 23 now. Have 125k saved up rn. I love simple and try not to spend my money on garbage. My goal is to have 1 million by 40 and then retire. I can then take out about 50k a year to live of and still keep my Wealth (depending on how the stockmarket moves ofcourse).
If only it were that simple. That million dollars in 20 years wont buy what a million dollars today buys. Same with the $50k you plan to live on. Dont forget that each year you have to withdraw more and more just to have the same spending power. Good luck.
@@Dave-sw2dm that is true! This is according to todays prices for food, housing etc. But to have some sort of goal and direction for my savings and investment I did some math and this is what i came up with. Who knows maybe i will make more, maybe less. The future will tell. But yes your statement is very true.
Thank you for the wish of good luck. I wish for you the same
Dave makes a good case but here is another way to look at what Oskar is saying here. He is on a STUNNING path to success and although he wants 1million by 40, given where he is at 23 means he will likely smash that target.
There is a saying "Aim for the moon, if you miss you'll still be among the stars."
Great work Oskar.
@@2GoRoam thank you very much! And thank you for Sharing your knowledge!
Very good to hear, I’m 27 roughly have 150k and a rental property worth about 200k Keep going, I know the life gets boring as hell when u see people with a fraction of your worth flaunting there cash but we will win in the long run
I love watching your content as it makes us feel secure with our finances at retirement. We made few blunders but we can live with it. We now focus on enjoying our travels and our well being. We have more time to guide our son, whenever we’re called for. To anyone who wants to retire early, focus on knowing how your retirement will be like and work towards it. Make sure you also live now and treat yourself from time to time but don’t overdo it. Do not spend more than you earn and make sure saving is a habit.
fantastic advice! Sounds like you built the right track and wow, we made more than a few blunders. lol
We learn from you lol and thank you… you and Sara are truly amazing
Boss this video mate! Im in my early 30s and have quite a bit more than the mean 60k stated here! Im not saying this to gloat but just due to my below the poverty line up bringing I am very happy about it. Im constantly thinking about what I will be able to leave for my daughters and any grandchildren.
I am 37 and I feel behind even though I paid off my mortgage with equity worth 130K, ISA is about 60K, SIPP is 26K and a defined benefit pension worth 11K a year at current contribution.
Well done
You're doing great Haider! Hopefully we'll help you get on track through our videos.
This is very true and relevant, haha. Before I reached the $100k threshold, 37, I realised how difficult things were. It didn't take me long to reach my goal of having over $2.8 million in my retirement fund alone at the age of 56. The fact that it was so much simpler from there may be due to the fact that my CFP is trustworthy.
Agreed. I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
-Agreed. I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
A very interesting video and these numbers are very terrifying! Many people in the UK,USA alike are going to food banks in their 20s, 30s, etc! And have no savings! And a few do have access to wealth, as they have invested, or saved very hard!
Retire where your money works hardest. Earn in developed country, early retire in developing one... 2k a month makes for a comfortable life in SE Asia, backed up by an emergency fund of course 😊
I retired early last year when I was 53, and I live very comfortably on less than £1000 per month in the UK - in fact, I wouldn't know what to do with more money than that!
Geo-arbitrage!!! That's my plan also. Looking forward to traveling and seeing the world !!!!
Wow@@FrugalMrB
@@FrugalMrB same here. I've been retired since age 55, so had to use savings till I got state pension at 66. Since then I haven't used any savings or personal pension. In fact, I've contributed to my SIPP and ISA each year from the state pension because I haven't spent it all! I think I live a pretty good life, I did enough travelling in my younger years (over 50 countries, several years), so I guess that cuts down my expenses.
GeoArbitrage is a wonderful approach!
I refuse to allow myself to be down and out even at my lowest.
Love both types of video Neil. This one is really clear and helpful. Very much looking forward to more and seeing the cameos. Making me smile just thinking of them, remembering previous ones. Thank you both so much
Nice! Sarah is in the next video coming out on Saturday!
The UK is tough. I left and have done much better. Net worth 2.5 million pound. I can retire now with 7000 K pension after tax. Work hard, make investing a priority and watch the conspicuous consumption. I’m 55 with a income of about 230000 pound a year.
230,000 is a very nice sounding income
Nice one Darren. On 2.5million, you might find you can take more than that... keep watching this series of videos!
What country?
Excellent video, I started my adult life as a single parent on benefits and thought I would never even own a home. What has really helped is as I have worked and my income increased I have never let lifestyle creep take that extra income. Now I am child free I am ploughing down so much money, I also have a side hustle alongside my day job. So many people my age moan about having no money whilst buying new cars and expensive holidays on credit. It’s about priorities and hard work.
Can you make a video about being in your low/mid-twenties about the best and smartest way to save money and build up a saving so that by the age of 30, we are ahead.
I'm 37. I only have just over £10 in savings, however I work for my council and am investing in their private pension scheme, do have a grand in cash for emergencies. I really wish I learned about finances in my 20s because I could have easily had triple this by now.
Above on all the figures. Single and retired last month @56. 🤞 inflation and the government don’t ruin my retirement….😡
Nice work Dr!!!
I'm 30 and I have about 6p in my bank account :) I need to sort myself out!!
Most peoples net worth is in property
Properties is normally included in networth number.
Agreed. An issue with that is being tied in that way reduces the opportunity of investment elsewhere.
Damn! This short video has instantly made me feel better about our situation. I really like the median picture, it might even stop me from worrying so much! 😅 Seventeen paydays to go and hopefully be able to spend winter in Thailand and summer, ha ha in the UK. Yes, I do realise it's an expensive way to go about it but there are reasons to keep a base in the UK. It might work out but, if we don't try it you'll never know. 🤔🤭 Oh yes I have subscribed for more whiteboard adventures. 😅😅
Thanks for subscribing Andrew. You'll certainly see that Thailand is well priced! It is all about having a plan that works for you though. Sounds like you have that going on.
Loving this Neil, English/Aussie girl here, way older than you 2, but right up my alley.
Thank you!
Just came across the channel. I am looking forward to looking through all the videos. Well done to both of you for being so courageous in going after your dream.
Thank you Adrian, love having you here.
I'm 37, single, net worth is around £250k. Not much at all.
I see peers of mine or similar age who are married, have some enormous house bigger than they need and well out of my budget, stuffed full of pets and latterly kids. Much richer and living a much happier life than me. It feels like they have their "faeces" together and I don't.
I started feeling like I was lagging behind in my retirement savings in my 40's, but I am retiring early into Southeast Asia for the arbitrage of location. There is hope for people that are way behind in the way of youtube channels, Amazon, Etsy, and other ways to make money by royalties. $300,000 at 4% rule is $12,000 per year, or $1,000 per month. (barely doable except in a few countries, but definitely not in America). I started a side hustle making coloring books to sell on Amazon KDP last fall, and I sell on average about 5 books per day. That's a royalty of $3.13 per book. I keep increasing the amount per day by making more books. In less than a year into it, I should be at 11 books per day, or $1047 per month in royalties. $300k can take 15-20 years to save in a 401k or Roth account, and I did it myself in that time frame, but I also built a side hustle that pays the same as an account that took 15-20 years to build. I built the hustle in 9 months.
Really interesting! A side hustle is a great idea, this seems to be working out great for you.
I liked this video format Neil as straight forward and easy to understand and follow. Looking forward to the future videos too :)
Thank you so much! Appreciate it.
Many thanks for the video. I'm 53 and very excited to watch you .Good luck and keep going. Give as all ideas from your experience. ❤
Thanks so much Lee, really hope we can help in the coming videos.
Comparing my net worth to others my same age is meaningless because we all have different wants, needs, and income levels while working.
Dave you are 100% correct. There is always this desire to compare but whatever someone else has doesn't matter. What you want and how you achieve it is all that matters.
Good comment.
Really enjoyed this video. What sticks out to me as a personal finance person is that till 60 we live in the anxiety that we won't have enough, and after our 70s worry that we won't spend it all. No wonder consumption smoothening is such a big topic in Economics! :)
Thanks Neil, I like this content too 👍
Glad you enjoy it!
Very nice!!! I like either format. However seeing the numbers is very helpful. Have a great day 🙂
Thank you so much, we will be mixing it up a lot. Soooo much to share.
I like the whiteboard format Neil, easy to follow when you accompany your words with the numbers. I also like your halo
I am 34, i saved up and bought my first house when i was 22. By the time i was 27 i had 5 houses. I then also put money into S&S ISA, a SIPP, gold, and a few other things. At 34 my net worth is around £1.2 million. I spent most my 20s working 80+ hours a week. It was a small price to pay the be able to enjoy my 30s now just have a family etc. I still work hard but i have a reasonable work life balance.
Just because you have reached the Median level for your age doesn't mean you're on track for retirement. 125K saved in your 60's isn't going to last long enough for many peoples 15-30 year retirement.
Indeed. There is comfort to be found in a median but that isn't to say it's enough. Good comment.
Recently tuned 40, c£300k in workplace pension savings plus c£250k in equity with my property , as a higher rate tax payer utilising Tax Relief is the biggest incentive I have to help me build wealth
Yes that Tax relief is a fantastic incentive. No idea what the new government will do with that but keep lumping into that pension while you can.
Clearly a lot of boomers in the comments. "Debt free and now house is worth 450k". What they don't tell you is... paid 25000 in 1995. Cost of living was a fraction of what it is now 🙄
I went through a horrific divorce at 27 and lost all my wealth.
I’m now 38 and own 5 properties… 3 of which paid outright…. I just can’t bring myself to spend money and reinvest the lot. It’s good but it’s also trauma ha
Nice work. Great to turn that adversity into your fuel to succeed.
Me and my other half have a combined wage of £100k+ a year, own our house, multiple cars and It’s good to have a bit of money to sit comfortably in life but me personally, unless you have goals then saving isn’t worth it.
Money can be replaced, time can’t so enjoy life.
But if you do save for the sake of it like my granda then get things in place for your money if you die. My granda who has no mortgage on his house anymore and 100s of thousands in savings wont make a will or assign anyone as his power of attorney. If we mention it to him he just thinks we want his money, it could go to a local charity for all we care, we just don’t want to government to get it.
Great video, thank you. Love the reference to accredited data sources from the ONS... great to see you both making these super informative videos....
I wonder what makes these stats up… just savings, investments and DC pensions?
Folk in their 50s now possibly have a DB pension from an early job (as do state employees)… at 25x yearly payout, this should also be treated as net worth. Those with full state pension credits have an effective extra worth of £300k for that too.
It's all of the above including DB, they apply an absolute number to the value of a DB plan to add in.
@@2GoRoam oh, great. Thanks for the clarification!
Thank goodness for that!
I was talking to a friend last week, about me being a millionaire, but you would never know it.
I have to work to live, and my existence is pretty mundane.
My wealth is in my house and my pensions, so my lifestyle is not going to change drastically.
The only sign will be my early retirement at 61.
Thanks for the informative video.
What's DB pension?
Not to mention that the recent bout of post-COVID inflation will knock about 30% off the buying power of the saved amounts you have given.
Geo-arbitrage is everything in retirement. Even if you have plenty of money, don’t you want that hard earned money to go further? A developing country has so much to offer.
Agreed, we love GeoArbitrage!
Agree that the median is a lot more accurate if you want to compare you net worth. Also sharing it per person is useful. People can file for divorce or are (temporarily) not in a relationship.
More important than comparing against other people is comparing with past self though. If you save more than you earn and try to get rid of debt you are already winning the game. #persist
I was always told your retirement pot should be what you need to live the life you want x 20. However that assumes your retirement pot stops compounding, which it doesn’t. Reckon 10 x Living Cost is a more realistic number.
Great video. I must say you shouldn't really take comfort in sitting in the median, those numbers are hardly enough to live comfortably on.
Hey thanks for commenting. It's great to have a starting point to work from.
@@2GoRoam yes for sure
41 with £550k personal net worth. Bought 2nd hand mobile phones, walked instead of taking the car , paid my mortgages off with massive overpayments in my 20s , never took car loans. Worked hard , took risks changing jobs and a 2nd part time role. Divorced at 25 and lost everything, had 10k to my name. It can be done !
It is going to be difficult for retirees and pensioners where inflated cost of gas, electricity, food etc is out of control through no fault of theirs but due to bad government policy, unless they can return to work. Mass emigration of retirees from broken western countries to lower cost of living countries looks very likely.
In my opinion, you need £500,000 + to retire reasonably comfortably with a 4% drawdown + state pension (if it's not means-tested by the time you retire)
Good content. Good to have some facts to think about
Thank you! Hope it is helping!
Happy I’ve seen these figures. I earn a fairly good wage and in my 30’s. I’ve already got £60,000 in my company pension and 13k in stocks. Have 20% each month going in my pension with the company contributions.
It’s discouraged not disparaged. Totally different meaning.
So nice to have you back! To answer your question, I guess I prefer having you discuss while out walking about. In regard to net worth, it would be helpful to know what figures are included: ie is social security included along with your savings, investments, pension and home equity? Perhaps real estate (equity) is bringing these figures up?
Everything you mention there is included apart from Social Security. Hope that helps. Appreciate the feedback on the video types!
For US viewers, also keep in mind that if you start a 529 for your child as soon as they are born, you can convert a portion to a ROTH IRA (up to that year's contribution limit and a maximum lifetime contribution) of the account has been open for 15 years.
I contributed $7900 a year to my child's 529 so we will be able to supercharge her retirememt plan and prep her for university. Proper preparation prevents piss poor prognosis.
In the UK you can put up to £9000 per year into a Junior ISA which will convert to a standard ISA (similar to ROTH IRA) at 18 years old (I wish there was a plan for one that converted at 30 years old, when they are a little more financially savvy.) You can also put money into a Junior SIPP (self-invested pension plan) which at a young age could really set them up for an early retirement.
@@AgileSnowWeasel that would be a superior system to what we have. The 529 conversuon is subject to a $36,000 lifetime conversion limit.
@@gobot4455 The system in the UK has been set up for the wealthy to pass money down generationally, so there are generally few limits. You can put £162,000 into a stocks and shares JISA and pass that (and the investment growth over that time) on to each child at 18. Along with a £64,800 JSIPP pension pot. Obviously 98% of people can't max out these allowances.
I'm a 22 year old Thai researching about investing and I was kinda surprised when you mentioned my country's currency, considering how weak it is 😂
Haha BUT.... We LOVE your country! Thailand is wonderful and is totally the land of smiles! :-)
60 here.
400k house long paid off.
3 new cars all paid in cash.
100k invested.
100k cash.
i'm probably retiring very soon. we can easy live off the wifes 80k a year salary,
key is not to loan money for silly flash cars. we drive a nissan leaf and toyota aygo. cars are the worst place to ever put your money. but for many a car is the most important thing to impress other people.
fools game that
Good video, very true about having a balance between comparing both up and down the socioecononic ladder.
2goroam travels is nice to see a walkabout in a destination (including some mundanity!)
2goroam should be presented in the best way to explain the point of the video. Whiteboard is fine, doesn't need to be flash. It just needs a clear aim, background, key message, demonstration, conclusion, next steps
Thanks Ian.
Really appreciate this, seems we are on the right course.
Great content - thanks!
Thank you!
I'm very well prepared. Been planning for 40 yrs and have invested properly. Retiring in 3 yrd.
Nice!!! Love to hear that. Well done, people will be jealous of your success, but are they jealous of all the work that got you to this stage?
@@2GoRoam And the sacrifices. I drive the same old 22 yr old car; my wife and I don't get the latest phones and keep them as long as possible; we don't shop frivolously; we take vacations only 1x per year and within budget; we plan everything; our big purchase is our anniversary and we buy a piece of furniture or plan a remodel. My biggest concern is that I'm fearful spending too much of our savings to ensure that our investments last beyond our lifetimes, yet, I'd want to balance that with "enjoyment" and not pinch everything.
Brilliant
I'm 55 and do the can I , can't I retire thing. Thanks for the video, I now feel so much secure about my isa pension pot
Nice one! Pleased you are on the path!
I don’t know about everyone else but the median net worth figures are what scares me, or rather should scare observers. If you’ve got those median numbers saved you’re either not retiring until your 70’s or you’re retiring in poverty.
Absolutely. Future videos will use these numbers to extrapolate further. It is nice to know you are average but not when you realise what average actually gains you. Good comment.
Spot on - like the white board content. Think I'm in a good position for next year at 59 to stop working or some part time work, thanks Nick
Nice! Well done Nick!!!
I work on the railway and it really annoyed me when the media reported on the strikes because they were using the Mean average income to show the public “these guys earn an average of £40k+ a year and they’re whinging about money”
Yet the high earners wages were being counted, these people who weren’t even involved in strike action. The average wage of the strikers was about £24k which is basically minimum wage these days.
We are 37 and 35. Normal wages (€ 7000 a month). One child. House worth 550K - loan 160K= 390K plus pension/investment portfolio of 112K. So I guess that we are OK ;) we prefer to travel and have nice experiences rather than fancy car/materialism
Turn 40 this year and just started to think about it.... Have 50k in a workplace pension, 20k in an ISA and just started Stocks and Share ISA yesterday. Lucky enough to have found a job where my tax is paid for me which may last the next 5 years (hopefully longer). Going to use this opportunity to try to have 100k in ISA and mortgage paid off before this job comes to an end. My missus is looking at holidays....
How can a job pay you tax ? Not aware of that tax loophole.
Well Explained ! 🤓 Thank you.
The video starts at 9:20
If you'll live your life for money, you won't be ever happy.
Left an orphanage at 16 and worked every day since, no work, no food on the table. Now 55 years old, I am taxed to the hilt, any spare cash I have goes on surviving from a month to month basis.
I scrimped and saved to buy my own home, all a could afford as a single person was a leashold that the freeholder (stinking Newham Council) slapped a £30,000.00 bill on me. Leaving me with more debt.
So now just waiting on retirement where when I can't go to the loo myself they will take the home I scrimped and saved for....................................................lovely country this!!!!!!!!
At 30 i had 0...i woke up at my 30th birthday, with no money, no career and and still studying. Gosh, it was a dreadful feeling, then i said to myself " what am i doing?? It's time to wake up and grow up ""😅 And now, after 17 years of grinding, i can finally feel that i have actually accomplished something. So, the answer for me was to take responsibility for my life and do my absolutely best at all times 😊
Its crazy now, a very high percentage of people will remain broke, no matter what they do they will hardly make ends meet,,, its very sad whats happening to this world...i know alot of hard working people who will remain stuck at the bottom, opportunities aint as easy to come by as they once were..
I’m 45 and only started saving and investing 5 years ago, my parents saved nil and their thoughts on investing was gambling. I have 27k in a SIPP and 8k in S&S isa and worried I’m too late to all of this 😮
The one thing is you are doing it. There is a saying that the best time to start investing is when you are 16 years old... the next best time is today. Stay the course and through our videos, I am confident that we'll be able to help you.
Couple wanting an idea if they can retire at 57? (aged 54 and 56)
ALready Debt free
2 properties (no Mortgages) £400k value for both
1 Property income circa 4k/year
2 Premium bonds full at 56 with potential £4k/year interest predicted
2 Dc pension ( circa 3.5k/ year till state)
2 DB pensions (totalling circa 34k /year as a couple for life)
1 sipp (circa £24k pot)
1 voluntary retirement lump sum (potential) £33k
2 DB pension lump sums ( totalling circa £90k)
2 full State pensions at 67 (totalling circa 30k+ / yr)
Potential large inheritances to follow
Could we retire now? earlier than planned?
Work in the NHS and feel its time to leave.
Depends on how you want to spend your retirement. I have never earned more than £30k per year, yet I retired early last year when I was 53. I don't expect to draw on my pension until about 2035. I do not have extravagant tastes, and I live very comfortably on less than £1000 per month - in fact, I wouldn't know what to do with more money than that!
@@FrugalMrB We have a current Net income of £60k a year at present and scared to give it up, due to being used to it. We have not had extravagent life styles and not really been abroad on holiday for last 10 years.
We drive a 10 year old car and do not keep up with the jones. We like to eat well and enjoye the comforts of home life.
We wish to travel and enjoy life without the stress of NHS as we have had very demanding jobs for a long time.
I would hope to travel atleast 2 -3 times a year.
You could easily retire. Though I wonder what you're doing with those lump sums because if each of you invested full 20k each year into a low cost ISA index tracker fund you could be making further income of at least 10% cash free. No mortgage and at least 40k coming in should provide for a good life and then when you hit 67 the State pension will kick in on top
Hi, watch this space, Sarah and I might be able to help sometime soon.
That's depressing! I'am a blue collar worker, above mean but still feel poor. Everything is getting expensive these days.
I just turned 40, about to sell my house, hopefully be left with £150k in cash, will buy another house and be left with around £100-110k in cash after. I was in the debt trap until my early 30s and thought I would never get out but was lucky with live in property flips and earning a high day rate salary. I hope to buy commercial property for cashflow and another live in flip and repeat. Hopefully I can quit my day job before I am 50. Have about 20k in pensions and £6k investments and 20k in savings, before selling my second house. I'm doing ok but this next decade will hopefully sort me out financially if I make good decisions and the economy doesn't implode before then.
Thanks for sharing your knowledge.
Thank you.
Since the 4th of July it is no longer the fruits of your labour you need to keep an eye on, It’s Labour eyeing your fruits that they want to take from you and spend themselves! 15:27
The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Great video, nice to see some real world figures. I am in my early 50s and am tentatively planning to leave my career in about 10 years, but I will still be doing a part-time job (has many benefits besides just extra financial 'pocket money'), but it is surprising the relatively low figures, if you are on the median track, or there about, in reality it is going to be very difficult to not work to generate some income, while in your 60's and 70's
I agree. The median numbers can give comfort but at the same time are scarily low.