Britain’s disposable income has fallen significantly over the past fourteen years compared to where it should be, a report this week found.
The Center for Cities said the average household’s disposable income is £10,000 behind where it would have been if pre-2010 growth rates had been maintained.
On average we are better off, but we are well below what we expected.
In this episode of the This is Money podcast, Georgie Frost, Lee Boyce and Simon Lambert look at what the problems could be, why we’re not getting richer faster, why we’re falling behind our international peers and what can be done.
And while our living standards are not accelerating any time soon, house prices have risen, with the average seller earning more than £100,000 last year. Is real estate inflation and the slowdown in disposable income growth linked? Simon thinks it’s part of the problem.
Savings rates are starting to fall, and dividend-paying mutual funds that yield a return of 5 percent or more seem an attractive step.
And finally, some tips on how to get the most out of Avios points, but who in the team is the Avios winner and who is the self-proclaimed Avios loser.
The way disposable income has fallen has changed to where it would have been if pre-2010 growth rates had been maintained