The average British man is 38, will live another 41 years and is educated to at least to A-level standard. The average British woman is two years older and will live to 82.
The average man works 39 hours a week and earns £27,600 a year. On average, women work less – 34 hours a week – and earn less – £22,151. (1)
The average loan to value (LTV) for a mortgage in the UK is 48%. (3) The average house price is £218,000 in 2016. (2) London is more than twice this at £537,000 compared to £157,000 in the North East. (3) Mr and Mrs Average have typically paid off 32% of their mortgage. (4)
People between the ages of 35 and 54 have typically saved £8,138, while over-65s have more than twice this amount with almost £18,000 set aside. UK adults have savings that are 21% of average annual earnings. (5)
Average house price – £218,000
Average mortgage – £104,640
Average savings – £8,138
Average pension pot – £45,000 (6)
Average salary – £27,600
The average salary UK for the tax year ending 5 April 2015 was £27,600. This is a median average and an increase of 1.6% over the 2014 median average which was £27,200. These averages are for full time employees with data taken from the ONS Annual Average Salary Survey. (5)
Lets see how much can be saved by Mr. Average who employs a regulated advisor.
Mortgage – Average mortgage of £104,640 is £436.00 per month @ 5% average over next 10 years. Fixing at 3% gives a mortgage per month of £261.60 giving a saving of ******£20,928.*****
Savings – Assumes we invest half £4,069 into a discretionary managed funds and the financial advisor could beat the high street rate by just a mere 3%. That’s a difference of £139.71 per year or a saving over 10 years of *****£1,397.*****
Pension – £45,000 pension is currently charged at 2%. If this was reduced to 0.5%. The calculation DOES not include enhanced performance as a result of the charges staying in the pension or performance of the pension itself. The savings alone amounts to £675 per year or over a decade *****£6,750.*****
Life Insurance – 40-year-old man for £250,000 worth of life and critical illness insurance, lasting 25 years. For example, a level-term life assurance policy for £250,000 would cost a 40-year-old male non-smoker £23.08 through an adviser, £29.85 through Tesco Bank and £35.30 if bought directly from Aviva. That’s a saving over 10 years of *****£1,466.*****
Total – £30,541 saved over 10 years by seeking financial regulated advice. Pretty amazing the power of good financial advice!
(1) Statistics reveal Britain’s ‘Mr and Mrs Average’ 13 October 2010 The Times.
(2) House prices rise for the first time since March, but the market is ‘losing momentum’ 7 Dec 2016. The Telegraph.
(3) The regions with the biggest mortgage debt revealed. 10 Feb 2016. This is Money.
(4) How average are you? What is the typical Brit like and how many people pick their nose? 17 JUL 2014 Daily Mirror.
(6) http://rmtdirect.com/wp/ifa-direct-home-financial-advisor-appointments-uk-average-fund-size/
