Nine in 10 Brits of high-earners in the UK say they don’t consider themselves wealthy, according to new research.
According to HSBC UK’s latest wealth reports, just one in 10 Brits earning an annual salary of £100,000 would describe themselves as ‘wealthy,’ while only 1% of the UK population identify as such.
This is despite the fact that people earning over £100,000 a year in the UK are in the top four per cent of the country’s earners.
HSBC’s report analysing the UK wealth landscape reveals a wide wealth perception gap, with people underestimating their earnings relative to others by roughly 30 percentage points, on average.
The report found that people in the UK believe an annual income of £213,000 is the threshold to being ‘wealthy.’ This is six times the national average salary.
But high-earners (those earning over £100,000), the income needed to be considered wealthy was a huge £724,000.
The findings show a huge disconnect between between people’s perceived and actual financial position, with many high-earners believing they are actually in the ‘squeezed middle.’
The differences in ideas around wealth vary by region as well. Londoners surveyed said that it takes more than £289,000 to be wealthy on average, whereas those in the Northeast say it’s an average of £80,000.
Vicky Reynal, Financial Psychotherapist, said: “HSBC UK’s findings reveal a paradox: despite having high earnings and ambitious financial goals, many mass affluent individuals still don’t feel wealthy. This disconnect underscores the psychology behind people’s perceptions of wealth.
“Anxieties about rising costs, inadequate savings, and the pressure of social comparison create a sense of scarcity,
even when objective wealth exists. By redefining wealth beyond the bank balance, focusing on our achievements, reducing unhelpful comparisons, and prioritising financial actions within our control, people can move confidently
toward the future they aspire to.”
Xian Chan, Head of Premier Wealth, HSBC UK said: “Wealth is a deeply personal concept, that is dependent not
only on people’s objective financial position but also on how they feel about money.
“People often evaluate their sense of wealth in relation to how financially secure they feel, and how close they are to
being able to achieve their financial goals. But the key for everyone is in early preparation. Investments remain the
most significant signifier of wealth, and adding to those gradually over the long-term is a crucial step for building
towards prosperity.
Starting to save even a small amount regularly, and as early as possible, while developing regular
habits, is one of the most important things that we can do to plan successfully for our financial futures.
“At HSBC UK, we’re committed to working with our customers to help them define wealth for themselves, take control
of their futures, and start building towards their aspirations – whether they’re already on their wealth journey, or just
starting out.”
Related: Assets That Can Preserve and Grow Your Wealth in the UK