Being considered wealthy isn’t just related to the money you earn; many things determine whether you’re financially well off compared to the people around you. Your job, disposable income, and savings. But also your age. How many people you care for financially and how. And whether or not you own your own home or other assets.
Research shows that most of us seem to think we’re normal and earn about average compared to our peers, but there are tools, though, that will help you measure, in addition to the research that’s been done on what’s considered wealthy in the U.K.
What’s Considered A High Income In The U.K.?
There are variations in how figures are calculated, but the average individual salary is around $39,000 (£30,000).
The Guardian reports that the median salary in the U.K. before tax is $45,862 (£34,963), while The Telegraph uses an average of $38,470 (£29,328). In 2021, the Office of National Statistics (ONS) used $41,188 (£31,400).
The top 10% of Britons earn $77,654 (£59,200) or more per year.
What Is High Net Wealth In The U.K.?
The seventh round of the U.K. Wealth and Assets Survey, the latest, classifies household wealth as the amount of available financial resources, including savings, the value of houses minus the mortgage, and art and investment income.
The survey shows that the median household net wealth in Great Britain is $396,798 (£302,500), but the highest is in the southeast of the country, $660,324 (£503,400), and more often where the head of the household is aged 55 or higher.
The least wealthy 10% of Britons have $20,200 (£15,400), whereas the richest 1% of households have more than $4.7 million (£3.6 million) in wealth. Indeed, a 2023 Oxfam report shows that this 1% of Britons hold more wealth than 70% of the rest. In fact, since 2020, they’ve gained $26 trillion in new wealth, nearly twice as much as the other 99% of the world’s population.
According to ONS data, the top 10% of households have a disposable income of $93,056 (£70,900) per year, while the lowest 10% have an average of $13,912 (£10,600).
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We Might Not Know If We Are Well Off In The U.K
Research shows that even when we earn above average, we might not realize it as we often underestimate how well we’re doing compared to others, believing that others in our social circle are always doing a ‘little better’ and us a ‘little worse.’
Research shows that people earning between $105,000 to $132,000 (£80,000 to £100,000) think they’re average compared to the rest of the British population. Incidentally, while most Brits believe that income is the main indicator of class in today’s society, 25% of people earning over $132,000 still identify as working class.
This makes sense, says The Guardian, for people in high-earning professions like lawyers, bankers, and doctors, who mix with people who earn more and see themselves as ‘just average’ earners. Instead of making comparisons between the haves and have-nots, it’s more like the yachts and have-not yachts.
But it is also true for people earning lower than the British average. In the same research, 61% of respondents whose net income was below $26,235 (£20,001) classified themselves as normal compared to the rest of the population. Scientists conclude that it’s because we usually mix in social circles similar to our own.
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Tools To Discover How Rich I Am In The U.K.
There are two tools that can help you calculate where you sit concerning British society. The U.K.’s Office of National Statistics has a wealth calculator you can use to see how your finances compare to other households across four key areas: your household income, your household savings, your property wealth, and your household spending.
Likewise, The Telegraph has a tool, Are You Rich? which measures the same things but also offers comparisons of your household incomes with those of well-known professions like a cleaner ($28,000), a farmer ($39,000), a vet ($63,000), the Mayor of London ($200,345) or the Prime Minister ($212,500). Once you enter your postcode, it can also tell you how well off you are compared to your neighbors.
