LONDON — What does wealth look like in the U.K. in 2025?
A new HSBC report suggests that an annual income of 213,000 pounds is what’s considered to be wealthy today, which is over six times the national average salary in the country.
The report recognizes those earning over 100,000 pounds a year as high earners, but nine in 10 high earners believe they need to be making more than 250,000 pounds a year to be considered wealthy.
The bank highlighted that 42 percent of high earners are planning for retirement, while 36 percent are saving for a rainy day and 25 percent are thinking about their generational wealth and what they will leave behind for their family.
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“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,” said Xian Chan, head of premier wealth at HSBC U.K.
He added that “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.”
When it comes to spending habits, the report outlined that four in 10 high earners, or 39 percent, own luxury items such as watches, handbags, jewelry or designer clothes, which is 10 percent higher than what the general public owns.
Only 44 percent of high earners believe that owning luxury goods makes a wealthy individual.
The report also suggested that 21 percent of high earners are aspiring to own luxury goods items in the next two years, but it’s investment that they value the most and see it as a top signifier of wealth. This includes financial or property investment, as well as investments in education or self improvement.
Early retirement or frequently traveling abroad was mentioned as a symbol of wealth over buying luxury goods or cars.
There was a slight disparity in the data about how frequently high earners buy new clothes, electronics or homeware.
Twenty-seven percent of high earners see buying those items monthly as an essential, while 44 percent think of it as a luxury.
“HSBC U.K.’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,” said Vicky Reynal, a financial psychotherapist.
“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 prioritizing financial actions within our control, people can move confidently toward the future they aspire to.”
The report found that the meaning of wealth changes with each generation.
Forty-nine percent of Gen Z, aged 18 to 24, consider wealth to be in non-material terms. High earning Gen Z consider a strong work-life balance to be a firm signifier of wealth and 41 percent are aspiring to achieve that in the next two years.
Only 35 percent of those in the age bracket of 35 to 44 agreed with the 49 percent of Gen Z.
How consumers are buying luxury fashion and beauty products is changing too.
According to a report by WPP, the advertising agency holding company, 27 percent of the 2,000 consumers surveyed said that they follow influencers and have bought items from social media platforms such as TikTok and Instagram.
The data identified that in-depth product reviews by influencers drove purchases from 49 percent, while styling videos or tutorials of how to use or wear the item came in at 39 percent and user-generated content featuring the product at 32 percent.
