Millionaire lifestyle 'costs £3m'

Property price rises mean there are now many more millionaires

A million pounds does not go as far as it used to, with people now needing nearly £3m to lead a millionaire's lifestyle, new research suggests.

Private bank Coutts & Co says the value of £1m has fallen so much in the last 25 years that it does not now afford a truly luxurious lifestyle.

People now needed £2.6m to enjoy all the trappings of wealth, it said.

Property price rises of more than 575% were the main reason for £1m going much less further than it used to, it added.

A millionaire used to be someone who was seen as super-wealthy, a person who didn't have to work if they chose not to Sarah Deaves Coutts & Co

The bank found that, between 2001 and 2004, the number of UK millionaires had soared by more than 80% to reach 425,000, thanks to a 64% house price jump.

Chief executive Sarah Deaves said that while £1m would provide a millionaire's lifestyle "a few times over" 25 years ago, it would now "only afford a small portion of the trappings".

"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," she added.

"A millionaire used to be someone who was seen as super-wealthy, a person who didn't have to work if they chose not to, and who was able to live a life of luxury simply by having £1m in cash or assets."

'Wales cheapest'

HAVE YOUR SAY Money doesn't make us happy, we can be sad and lonely on any amount Martin Parkes, Hemel Hempstead Send us your comments

The bank considers a millionaire's lifestyle as including a luxury five-bedroomed house with staff, an apartment, two luxury cars, a yacht in the south of France and two luxury holidays a year.

But, despite the bank's research, its own survey found that 65% of people would immediately quit their job if they won £1m.

It also said that more than half of those questioned thought they might become millionaires during their lifetime.

Londoners would need the most cash - £3.47m - to support a millionaire's lifestyle compared with just £451,000 to support the same lifestyle in 1980.

Wales would be the cheapest region in which to live the same lavish lifestyle with £2.2m needed, according to the research.