Adverse Mortgages UK

Over six million people in the UK today enjoy a 1907 millionaire's life, new statistics have shown.

A hundred years ago, £11,700 was worth as much as £1 million today, highlighting the effect of inflation over the past century, according to Clerical Medical.

And compared to 1987, somebody would now need double the amount of money to enjoy the same spending power today, it added.

Furthermore, the company found that the past decade has seen the value of being a millionaire deteriorate through inflation, with £1.3 million today the equivalent of £1 million in 1997.

And while £1 million can still go a long way with the correct financial planning, Clerical Medical managing director Rob Devey has said that its value will continue to fall.

"The value of £1 million will be reduced significantly further over the next 50 years even if inflation is kept firmly under control," he said.

Last week, Clerical Medical announced that it will no longer be open group pension schemes after mid-April.

© Adfero Ltd

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