‘Who Wants To Be A Millionaire?’ debuted in 1998, and as we all know from the title, offered a cash prize of £1,000,000, the largest ever prize from a quiz show.

Over the years, that cash prize has remained the same, with no adjustment for inflation. Inflation changes every year, increasing on average by 2.00% per annum in the UK.  A small but significant change.

So, two questions.  How much is the £1,000,000 you would win today worth in relation to the original 1998 prize?  How much would the prize have to be now for it to have the same purchasing power as it did in 1998?

We can see the £1,000,000 prize money from 1998 has decreased in value to be worth £530,000 in today’s money.  For the prize to have retained the same purchasing power as it had in 1998, it would need to increase to £1,840,000.  Substantial differences.

When investments increase in value, it is always worth keeping one eye on inflation as the real value of savings and investments can quickly be eroded. The ‘under the mattress’ approach does not expose you to investment risk; it exposes you to reduced purchasing power, resulting in significant real-world losses.

Patrick Christie
Graduate Trainee Financial Planner – WealthFlow
Patrick.Christie@wealthflow.com

This article is distributed for educational purposes and should not be considered investment advice or an offer of any product for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. Past performance is not indicative of future results and no representation is made that the stated results will be replicated. Errors and omissions excepted.

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WealthFlow Group Ltd. Registered in Scotland No SC635011. Registered Office: 10 Charlotte Square, Edinburgh EH2 4DR.

Head Office & Consulting Rooms: 10 Charlotte Square, Edinburgh EH2 4DR.

Mail correspondence to our Central Scotland Admin Hub: WealthFlow Group Limited, PO Box 14947, Grangemouth FK3 3AU.

Authorised and regulated by the Financial Conduct Authority

For your protection, unresolved complaints can be referred to the Financial Ombudsman Service.

To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

WealthFlow Group Ltd. Registered in Scotland No SC635011. Registered Office: 10 Charlotte Square, Edinburgh EH2 4DR.