/ How so??

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Blizzard - on 05 Jan 2013
In reply to the Welfare thread.

http://www.moneyvista.com/news/news-articles/average-brit-to-make-a-million-by-age-56/

Is this story the other side of the coin, and how far does it stretch the truth of becoming rich rather than being stuck *poor*.
Gudrun - on 05 Jan 2013
In reply to Blizzard:

What!!

How come iv'e only got 500 quid and i'm 41 years old?



Jack B on 06 Jan 2013
In reply to Blizzard:

Hmmm. It's based on an average wage, presumably the mean wage of each age group. The problem with that is the mean average wage in the UK is rather higher than the typical wage.

Consider 100 people:
25 of them earn 12K/year
35 of them earn 18K/year
20 of them earn 25K/year
12 of them earn 30K/year
5 of them earn 50K/year
2 of them earn 75K/year
1 rich capitalist earns 500K/year

Assuming you start earning at 18, you'll need to average 27k/year to hit a million by 56. The average wage of the above group is 27k/year. How many will actually earn that million? Only one in five.

I don't know how well my hypothetical hundred people reflects the real distribution in the UK, but it explains why I don't trust 'average'.
Gudrun - on 07 Jan 2013
In reply to GudrunEnsslin:
> (In reply to Blizzard)
>
> What!!
>
> How come iv'e only got 500 quid and i'm 41 years old?

I neglected to mention my 500,000 house,250,000 share option and my new Aston Bentley.

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