Number of retired millionaire households tops one million

There are over one million millionaire retired households in the UK, new analysis has shown. The number has soared by 69 per cent compared with 2006-2008 when the number stood at just over 636,000.Prudential examined the latest ONS data available, which relates to 2010-2012, to find that 11 per cent of over-65 households had total wealth of more than £1million, an increase from seven per cent in 2006-2008.However, at the other end of the spectrum, 12 per cent had net savings and investments worth less than £500.Another 12 per cent of pensioner households were worth less than £40,000.{desktop}{/desktop}{mobile}{/mobile}The over-65s as a group had a greater proportion of millionaires than the country as a whole – 11 per cent compared with the nine per cent of all UK households that are worth more than £1 million.The reason for the rise in millionaires was put down to a significant increase in the average value of pension assets, an increase in the value of the other financial assets held by retired households, and a rise in the average value of property assets for pensioner couples.The median value of private pension assets – excluding those who have no private pension provision – has increased to £82,300 in the most recent figures, up from £60,000 in 2006-2008.The number of people who had some private pension wealth also increased during this period, to 76 per cent from 73 per cent.Savings and investments have also made a considerable contribution to the growth in the number of pensioner millionaires.Nineteen per cent of over-65 households had savings and investments worth more than £100,000 – an increase from 15 per cent in 2006-2008.In terms of bricks and mortar, average net property value for a retired couple was £210,000 – an increase from £200,000 in 2006-2008.However, for single pensioners the figure has fallen slightly, to £165,000 from £170,000 in 2006-2008.Vince Smith-Hughes, retirement expert at Prudential, said: "These results challenge a few commonly-held perceptions. For example, it is perhaps surprising that the proportion of pensioner wealth accounted for by pension assets and savings and investments has grown far quicker than the relative value of property assets over the last few years."The figures underline the importance of people saving as much as possible as early as possible in their working lives, to enable them to secure a comfortable income in retirement."

Number of retired millionaire households tops one million

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