One Million Pounds is not Enough

Those who hanker after the luxurious lifestyle of the super-wealthy will be disappointed to hear that they will need much more than a million pounds to fulfill their dream, according to a new study.

Private bank Coutts and Co say that one million pounds no longer covers the cost of the owning all the essential assets of the rich - the five bedroom house with personal staff, the top of the range car and the foreign villa not to mention the five star holidays and meals out in top of the range restaurants. It says aspiring millionaires will now need closer to £3 million to become part of the rich club.

But research shows that two thirds of the population would quit their jobs straightway if they won £1 million. Four in five people would give money to family or friends but only just over half would give some away to charity.

Around a fifth of people said they would need one million in the bank to feel wealthy.

Sarah Deaves, Coutts CEO commented: "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.

"However, while 25 years ago £1million 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," she added.

In 1980, people needed £451,000 in wealth and assets to live the millionaire lifestyle. Today in London, the rich need around £3.48 million. A big chunk of this comes from the dramatic increase in property prices which have risen by 575 per cent over the last 25 years.

The number of millionaires in the UK has risen from 230,000 in 2001 to 425,000 in 2004 largely because of a 64 per cent jump in house prices during this time.