How Much Do You Need to Earn to Be Wealthy?
HSBC UK’s report reveals that an annual income of £213,000 is now needed to be considered wealthy.
What does it truly mean to be wealthy? Is it a six-figure salary? A yacht? The ability to retire early? According to new research from HSBC UK, the perception of wealth varies widely across income levels, regions, and personal expectations. And the results may challenge what you think you know about financial success.
HSBC UK's insight report, Your Money’s Worth: Defining Wealth in 2025, reveals that people in the UK believe an annual income of £213,000 constitutes wealth; more than six times the national average salary. But interestingly, even those who are among the highest earners don’t always see themselves as wealthy.
The Wealth Perception Gap: Why High Earners Don’t Feel Rich
One of the most striking findings in the report is the disconnect between earnings and perceived wealth. While those earning over £100,000 per year fall into the top 4% of UK earners, only 1 in 10 of them consider themselves wealthy.
High earners tend to vastly underestimate their position in the wealth hierarchy, placing themselves in the top 52% rather than the top 4%. This discrepancy highlights what many are calling the ‘squeezed middle’ phenomenon, where even those who earn well above average still feel financially constrained.
Regional Differences in Wealth Perception
This perception gap is particularly pronounced in London, where respondents believe you need an income of over £289,000 to be considered wealthy. Meanwhile, in the Northeast, the threshold drops to just £80,000, underscoring how wealth is viewed differently across the UK.
What Do High Earners Want?
Despite their substantial earnings, many high-income individuals are focused on long-term financial goals rather than luxury indulgences. Almost half (48%) cite a comfortable retirement as their main financial ambition, followed by home ownership (30%) and significant home improvements (20%).
However, challenges such as rising costs, insufficient savings, and unpredictable income still affect even this affluent group.
Financial Psychotherapist’s Perspective
Financial psychotherapist Vicky Reynal explains this paradox:
“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: The New Signifier of Wealth
While luxury items like private jets (51%) and yachts (48%) still hold symbolic power, the definition of wealth is shifting. Among high earners, non-material factors such as retiring early (48%), frequent travel (45%), and investments (54%) have become key indicators of financial success.
The general population is also beginning to recognize the importance of investments, with 49% seeing them as a critical marker of wealth. However, there is a stark contrast in actual investment participation:
- 55% of those earning over £100,000 have investments
- Only 18% of the general population does
This highlights a growing financial divide, where access to wealth-building opportunities is not evenly distributed.
The Next Generation’s Approach to Wealth
Younger generations are redefining what it means to be wealthy. Nearly half (49%) of Gen Z (18-24-year-olds) view wealth in non-material terms, compared to just 35% of those aged 35-44.
A strong work-life balance has emerged as an aspirational goal, with 41% of high-earning Gen Z individuals prioritising this over traditional financial markers.
Openness About Money Among Gen Z
Interestingly, Gen Z is also more open about discussing money. Nearly half of 18-24-year-olds enjoy talking about finances, compared to just 3% of those over 55.
This transparency is reflected in their investment behaviour, with 43% of high-earning young professionals already having an investment portfolio. The trend suggests that financial literacy and proactive money management are becoming more ingrained in younger generations.
The Role of Financial Planning in Wealth Building
So, if wealth is about more than just salary, how can individuals take control of their financial future?
HSBC UK’s Head of Premier Wealth, Xian Chan, emphasises the importance of long-term financial planning:
“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.”
A New Definition of Wealth
HSBC UK’s latest findings challenge traditional notions of wealth, revealing that financial success is about more than just income.
A six-figure salary alone doesn’t necessarily equate to feeling wealthy; factors such as financial security, investments, and future planning play a critical role.
As high earners continue to strive for financial stability and long-term goals, the real takeaway is clear:
Wealth is not just about how much you earn, but how you manage it.
By shifting the focus from income to investments, savings, and financial planning, individuals can redefine what wealth means to them and take meaningful steps toward achieving it.
