Despite earning more than £100,000 per year and being in the top 4 percent of UK earners, nine in ten high earners do not consider themselves wealthy, according to a new report from HSBC UK.
The findings, published in ‘Your Money’s Worth: Defining Wealth in 2025‘, noted a large wealth perception gap, with many people underestimating their financial standing relative to others.
Overall, Britons consider an annual income of £213,000 to be the threshold for wealth – more than six times the national average salary. When it comes to top earners the perceived threshold for wealth much higher – estimating an annual income of £724,000 as necessary to be considered affluent.
The report also finds that these high earners perceive themselves as being in the top 52 percent of earners, only slightly above average, reinforcing a disconnect between actual and perceived financial status.
Differences in Wealth Perception
There are notable regional differences in perceptions of wealth. Londoners believe an annual income of £289,000 is necessary to be wealthy, while residents in the Northeast set the figure at £80,000. These variations reflect differences in the cost of living and financial expectations across the UK.
HSBC UK’s analysis indicates that high earners tend to set ambitious financial goals, yet many feel they are not on track to achieve them. Less than half (44%) of high earners with financial goals believe they are making sufficient progress, while only 21 percent of the general population feel the same.
Despite this, optimism remains high, with 95 percent of high earners and 85 percent of the general population believing their financial goals are attainable. Retirement planning is a key focus, with 48 percent of high earners prioritising a comfortable retirement. Other common goals include home ownership (30%) and home improvements (20%).
Financial Challenges and Credit Usage
Even among high earners, financial challenges remain. Immediate costs are a concern for 27 percent, while 14 percent cite unpredictable income as an obstacle. Credit usage is also a significant factor, with HSBC UK Premier customers nearly twice as likely to hold an HSBC UK credit card compared to other customers. Additionally, one in ten Premier-qualified customers regularly use their overdrafts.
Financial Psychotherapist Vicky Reynal said that 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,” Reynal said. “Anxieties about rising costs, inadequate savings and the pressure of social comparison create a sense of scarcity, even when objective wealth exists.”
Investments as a Key Indicator of Wealth
The report noted differing attitudes towards wealth indicators, with more than half (51%) of the general population associating private jets and yachts with wealth. However, high earners are more likely to define wealth through non-material means, such as early retirement (48%), frequent travel (45%), or investments (54%).
Investments are a key marker of wealth for many, with 49 percent of the general population viewing them as a significant indicator. Among those earning over £100,000 per year, 55 percent hold investments, compared to just 18 percent of the general population
Younger Generations and Wealth
Younger generations are also redefining wealth. Almost half (49%) of Gen Z respondents view wealth in non-material terms, compared to 35 percent of those aged 35-44. High-earning 18-24-year-olds prioritise work-life balance, with one in three identifying it as a strong indicator of wealth and 41 percent aspiring to achieve this in the next two years.
Attitudes towards financial transparency also vary by age. Nearly half of 18-24-year-olds are comfortable discussing money, compared to just 3 percent of over-55s. This openness extends to investment behaviour, with 43 percent of high earners in this age group already holding investment portfolios.
Xian Chan, Head of Premier Wealth at HSBC UK, said that wealth is a deeply personal concept which depends not just on people’s objective wealth, 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 achieving their financial goals,” Chan said.
Chan added that the key for everyone is early preparation and that saving even small amounts to invest while developing consistent financial habits can go a long way towards planning for the future.
