How much do you need to earn to be wealthy? £213K, according to new insight from HSBC UK

• A new report from HSBC UK uncovers a wealth perception gap, revealing that an annual income of £213,000 is what it takes to be considered 'wealthy' today
• That's despite nine in 10 high earners (those earning over £100,000 a year) saying they do not consider themselves as wealthy
• Definitions of wealth are shifting, with high earners and younger generations identifying work-life balance as a key marker of wealth
• The new insight comes as HSBC UK unveils its new Premier proposition for high earners across the UK, offering new benefits across wealth, international, travel and health

LONDON, Feb. 26, 2025 /PRNewswire/ -- People in the UK believe an average annual income of £213,000 constitutes wealth, over six times the national average salary^[1] - according to HSBC UK's new insight report, 'Your Money's Worth: Defining Wealth in 2025', with the top 4% of earners often setting a much higher bar and underestimating their comparative affluence.

The report, which analyses 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.

This perception gap is largest amongst higher earners. Despite being in the top 4% of UK earners, only one in 10 people earning £100,000 or more would describe themselves as 'wealthy', while only 1% of the UK population identify as such. High earners also place the threshold for wealth much higher, citing £724,000 as the income it takes to be considered wealthy.

Despite being in the top 4%, high earners position themselves in the top 52% relative to the rest of the UK population, just above average^[2]. This highlights a significant disconnect between perceived and actual financial position and hinting to how many high earners self-identify as the 'squeezed middle'. This is despite HSBC UK Premier customers having five times more savings and three times more money coming in and out compared to most HSBC UK customers.

Perceptions of wealth don't just differ across income level. The report reveals that there are also distinct regional differences both in wealth and the way it is perceived. Londoners surveyed said that it takes more than £289,000 to be wealthy on average. Meanwhile, those in the Northeast say it's an average of £80,000.

Higher earners aiming high in terms of goals

HSBC UK's analysis reveals that high earners often have ambitious financial goals, but just under half (44%) of those with financial goals feel they are on track to achieve them. This drops significantly to only one in five (21%) of the general population. Despite not feeling on track to meet their goals, most people are optimistic about their financial futures, with 95% of high earners and 85% of the general population believing that their financial goals are achievable.

When it comes to financial ambitions among high earners, almost half (48%) are aiming for a comfortable retirement, home ownership (30%), or want to make significant home improvements (20%). But the need to prioritise more immediate costs (27%), insufficient savings (11%), and unpredictable income (14%) remain challenging, even for this more affluent group.

Credit plays an important part in helping higher earners manage their day-to-day finances. HSBC UK customer data shows that Premier customers are nearly twice as likely than most HSBC customers to also hold a HSBC UK credit card, although maximizing points and benefits will be a key driver of this trend. Meanwhile, one in 10 HSBC Premier-qualified customers are using their overdrafts regularly, compared to one in six general population customers.

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."

Investments key indicator of wealth for more than half of Brits

HSBC UK also explores diverse attitudes towards signifiers of wealth. While over half (51%) of the general population identifies owning a private jet or a yacht (48%) as the main signifier of wealth, high earners are more likely to consider non-material factors – such as retiring early (48%), frequently travelling abroad (45%) or having investments (54%) - as more relevant symbols.

Investments have emerged as critical markers of wealth across the board, with 49% of the general population seeing this as a key signifier of wealth. While the majority (55%) of those earning over £100K have investments, this figure drops dramatically to just 18% of the general population.

Almost half (49%) of Gen Z (18–24-year-olds) consider wealth in non-material terms, compared to one third (35%) of those aged 35-44. When it comes to high earning 18–24-year-olds^[i], one third believe that having a strong work-life balance is a strong signifier of wealth, and 41% are aspiring to this in the next two years.

Among the nationally representative sample, this generation is also likely to be proactive and open about their finances, with nearly half of 18–24-year-olds saying they like talking about money compared to just 3% of over 55s. This proactivity is reflected in their investment behaviour, with nearly half (43%) of high earners in this group^[ii] already having an investment portfolio, and less than one in five (17%) of those in the nationally representative sample are aspiring to do so.

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."

HSBC UK's latest report reveals a shift to a more holistic view of wealth among high earners. The bank's new, enhanced Premier offer features tailored benefits across health, wealth, international and travel. From comprehensive healthcare cover to lounge access and personalised wealth management, the new Premier offer caters to high earners looking to build and grow their wealth, whatever their ambitions may be.

^[1] Source: ONS
^[2] Source: ONS

^[i] N.B. The base size for this group of respondents is less than 50.
^[ii] As above, the base size for this group of respondents is less than 50.

Notes to editors:

Methodology
The research was conducted by YouGov on behalf of HSBC UK from 12-19^th December 2024. YouGov surveyed over 2,000 UK adults, with the respondent pool covering both a nationally representative sample of the general population (1,010 completes) as well as a specific sample of high earners - those earning £100K+ annually- (1,003 completes). The methodology used combined quantitative data from surveys with qualitative anecdotal insights garnered from open-response questions. 

About HSBC UK:
HSBC UK serves over 14.9 million active customers across the UK, supported by 23,700 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring-fenced bank and wholly-owned subsidiary of HSBC Holdings plc.

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world's largest banking and financial services organisations.

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