On 21st June, the UK will commemorate Prince William’s 40th birthday with a £5 coin featuring his portrait. But what would £5 from 1982 be worth today?
According to the Bank of England’s inflation calculator1, price growth has averaged 2.7% in the last four decades, making a £5 note in 1982 worth just £1.74 in real terms today. To put this into context, the same £5 note which bought someone 25 pints of milk in 1982, could today get them just 9 pints, according to ONS data, meaning two thirds (65%) of the pound’s value has been wiped since Prince William’s birth forty years ago.
However, analysis by F&C Investment Trust (“F&C”), the world’s oldest collective investment fund, shows that the same £5 invested in an F&C stocks and shares ISA forty years ago is now worth a staggering £881.77 3.
Beatrice Hollond, Chair, F&C Investment Trust said: “Our analysis shows just how much inflation has eroded the pound’s purchasing power over Prince William’s lifetime and should act as a reminder to us all to make sure our money is working as hard as possible. Of course, no investment is 100 per cent inflation-proof, but a balanced, diversified portfolio will have ensured risk was spread across asset classes, minimising the effect of price rises over the four-decade investment period”.
