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UK mortgage holders may need "a thrillion £s"

Date: Wed, 19 Oct 2005

UK mortgage holders may need more than a million to life a millionaire's lifestyle, according to new research.

A study from private bank Coutts shows that the average person in the UK needs around £2.6 million to ensure they have enough in the bank to support an extravagant lifestyle.

If you are planning to live your millionaire lifestyle in London then that £2.6 million would need to be increased to £3.5 million because of the capital's high cost of living.

The increasing cost of the housing market, with average prices increasing by 575 per cent over the last 25 years, means that £1 million may not go very far these days.

"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 £1 million in cash or assets," said Sarah Deaves, chief executive of Coutts.

"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: "However, while 25 years ago £1 million would have been more than enough to comfortably live the ‘millionaire’s lifestyle’ a few times over, today it will only afford a small portion of the trappings."


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