ALTHOUGH most of us still dream of being millionaires, new research suggests that the exalted financial status isn't matched by actual spending power...
Statistically speaking, you would need £17.5m today to enjoy the equivalent lifestyle of someone with £1m 50 years ago.
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Or looked at the other way round, in 1958 just £57,143 would have been worth £1m in today's money.
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And the effects of inflation over the years mean that, although not exactly "ten a penny", many people are now millionaires with a recent estimated total of around 376,000 in the UK.
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The research – carried out by Halifax Financial Services and sourced from the Office of National Statistics – also shows that the value of £1m today will be cut by two-thirds over the next 50 years if retail prices rise in line with the Government's inflation target of two per cent a year.
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Alternatively, someone would need £2.7m in 2058 to fund the same lifestyle as an individual with £1m today.
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Put in the context of age, the impact of inflation on spending power means that a lump sum of £1m is worth more to a 50-year-old than a 20-year-old.
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Assuming an inflation rate of two per cent, when today's 50- year-old reaches the age of 60 in 2018, £1m will be worth £820,348 in today's terms.
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In contrast, today's 20-year-old would find their £1m worth £452,890 when they are 60 years old in 2048.
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Halifax Financial Services chief economist Martin Ellis said: "£1m is still a lot of money even though inflation has substantially eroded its purchasing power over the past half a century.
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"Although £1m cannot fund the lavish lifestyle it once could, it can still go a long way with careful financial planning."
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If you were fortunate enough to have £1m lying around, it would earn £50,000 a year gross interest in a five per cent interest account.
Statistically speaking, you would need £17.5m today to enjoy the equivalent lifestyle of someone with £1m 50 years ago.
..
Or looked at the other way round, in 1958 just £57,143 would have been worth £1m in today's money.
.
And the effects of inflation over the years mean that, although not exactly "ten a penny", many people are now millionaires with a recent estimated total of around 376,000 in the UK.
..
The research – carried out by Halifax Financial Services and sourced from the Office of National Statistics – also shows that the value of £1m today will be cut by two-thirds over the next 50 years if retail prices rise in line with the Government's inflation target of two per cent a year.
..
Alternatively, someone would need £2.7m in 2058 to fund the same lifestyle as an individual with £1m today.
..
Put in the context of age, the impact of inflation on spending power means that a lump sum of £1m is worth more to a 50-year-old than a 20-year-old.
..
Assuming an inflation rate of two per cent, when today's 50- year-old reaches the age of 60 in 2018, £1m will be worth £820,348 in today's terms.
..
In contrast, today's 20-year-old would find their £1m worth £452,890 when they are 60 years old in 2048.
..
Halifax Financial Services chief economist Martin Ellis said: "£1m is still a lot of money even though inflation has substantially eroded its purchasing power over the past half a century.
..
"Although £1m cannot fund the lavish lifestyle it once could, it can still go a long way with careful financial planning."
..
If you were fortunate enough to have £1m lying around, it would earn £50,000 a year gross interest in a five per cent interest account.
.
By Rob Waugh
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