YOU CAN'T GET RICH IN THE UK ANYMORE

Summary

The conversation highlights the financial struggles faced by people, particularly men in their mid-60s, in today's economy. Comparing the cost of living and housing prices from the 1980s to the present, the speakers emphasize how difficult it is to make ends meet on an average salary, especially in cities like London. They discuss the challenge of balancing basic expenses with saving for the future, noting how inflation, rising rents, and stagnant wages have made it nearly impossible to live comfortably. They conclude with a sense of disillusionment towards the UK's economic system.

Takeaways

• 💸 The speaker emphasizes the importance of financial planning before reaching the age of 65, noting that neglect can lead to financial, physical, and mental difficulties.
• 🏠 The speaker highlights how housing affordability in the UK has worsened significantly since the 1980s, with house prices now being 10 times the average salary, compared to only double in the past.
• 💰 In the 1980s, the average house price in the UK was £29,000, and the average salary was £14,000. Today, the average salary is £30,000, while the average house price is £240,000, showing a major gap in affordability.
• 🔄 The speaker believes that life in the UK has become about working solely to cover bills, unlike previous generations where financial pressure wasn't as extreme.
• 🌍 The speaker discusses potential alternatives for living abroad, suggesting that living in places like Nigeria or other countries may offer a better quality of life at lower costs compared to the UK.
• 🚗 The cost of living in London (Zone 5) is broken down, with rent, council tax, utilities, and transport making it almost impossible to save, even for someone earning £40,000 per year.
• 📉 People on decent salaries, such as £50,000 per year, still struggle to afford basic living expenses, let alone save for the future.
• 🏘️ The speaker points out how difficult it is for people to buy homes, even if they save for years, due to rising house prices and high deposit requirements.
• 🔄 Inflation and rising mortgage costs have caused significant financial stress, especially for homeowners trying to manage multiple properties.
• 🧠 The speaker touches on the mental toll the financial strain is taking on people, with rising depression and stress, and how the only escape for many is going out to parties as a temporary relief.

Q & A

What financial challenges are men facing as they approach the age of 65?

Many men at 65 find themselves in financial trouble, having not saved enough. They're also in physical, mental, and emotional distress, often with strained family relationships and lacking a support system.

How have housing prices changed in the UK from the 1980s to today?

In 1985, the average house price in the UK was £29,000, while the average salary was £14,000. Today, house prices have risen to around £240,000, while the average salary is only £30,000, making home ownership ten times harder than it was in the past.

Why does the speaker suggest that living in the UK has become financially unviable?

The speaker argues that salaries have not kept up with the rising costs of living. People are working full-time yet only able to pay bills with nothing left for savings, investments, or a comfortable lifestyle.

How does rent in London compare to property prices in Nigeria, according to the speaker?

The speaker notes that rent for a house on Banana Island, Nigeria, is about £3,300 a year. In contrast, rent for a small London flat is around £1,350 per month, making London significantly more expensive.

What are the financial pressures for someone earning £40,000 annually in London?

With a salary of £40,000 after tax, a person would break even after paying rent, bills, and essential expenses. The cost of living in London requires at least £2,500 monthly just to cover basic needs without any luxuries.

How has inflation and rising mortgage rates affected property owners in the UK?

Many property owners are struggling to keep up with mortgage payments, with some having to find an extra £3,500 per month just to cover the increased costs due to inflation and rising interest rates.

Why is saving for a deposit on a house becoming increasingly difficult in the UK?

To save for a typical 10% deposit of £27,000, someone saving £500 a month would take five years to save enough. With rising property prices and low salaries, it's becoming harder for people to save for a deposit while covering basic living costs.

What is the speaker's view on moving out of a parent's house for young adults in the UK?

The speaker argues that it's nearly impossible for young adults to move out and save money due to the high cost of rent. Staying at home with parents is often the only way to save, as moving out would leave them with no savings.

What impact has the current economy had on spending habits like getting regular haircuts or personal training?

People have started cutting back on small luxuries, such as weekly haircuts and personal training sessions, because these are seen as unnecessary expenses in the current economic climate.

What is the speaker's perspective on the UK's economic future?

The speaker believes the UK is economically 'finished,' citing rising living costs, low wages, and inflation. They suggest leaving the country for better opportunities elsewhere as the economic situation worsens.