A new report from HSBC has revealed that there is a wide wealth perception gap in the UK as people underestimate their earnings relative to others by around 30 percentage points, with the top four per cent of earners in the country vastly underestimating their comparative affluence.
The HSBC report, titled Your Money’s Worth: Defining Wealth in 2025, reveals that only one in 10 people earning £100,000 or more described themselves as ‘wealthy’, despite being in the country’s top four per cent of earners. Only one per cent of the UK’s population identifies as wealthy. High earners also place the threshold for wealth much higher, citing £724,000 as the income it takes to be considered wealthy.
HSBC UK’s latest report reveals a shift to a more holistic view of wealth among high earners. The bank’s new, enhanced Premier offers 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.
Disparities in earnings and attitudes
Despite being in the top four per cent, high earners position themselves in the top 52 per cent relative to the rest of the UK population, just above average. 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.
Vicky Reynal, financial psychotherapist
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.”
Perceptions of wealth don’t just differ across income levels. 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.
Financial goals not met: optimism nonetheless
HSBC UK’s analysis reveals that high earners often have ambitious financial goals, but just under half (44 per cent) of those with financial goals feel they are on track to achieve them. This drops significantly to only one in five (21 per cent) of the general population. Despite not feeling on track to meet their goals, most people are optimistic about their financial futures, with 95 per cent of high earners and 85 per cent of the general population believing that their financial goals are achievable.
When it comes to financial ambitions among high earners, almost half (48 per cent) are aiming for a comfortable retirement. Meanwhile, for 30 per cent home ownership is the top ambition and 20 per cent want to make significant home improvements. But the need to prioritise more immediate costs (27 per cent), insufficient savings (11 per cent), and unpredictable income (14 per cent) 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 maximising 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.
Indicators of wealth
HSBC UK also explores diverse attitudes towards signifiers of wealth. While over half (51 per cent) of the general population identifies owning a private jet or a yacht (48 per cent) as the main signifier of wealth, high earners are more likely to consider non-material factors – such as retiring early (48 per cent), frequently travelling abroad (45 per cent) or having investments (54 per cent) – as more relevant symbols.
Investments have emerged as critical markers of wealth across the board, with 49 per cent of the general population seeing this as a key signifier of wealth. While the majority (55 per cent) of those earning over £100,000 have investments, this figure drops dramatically to just 18 per cent of the general population.
Almost half (49 per cent) of Gen Z (18–24-year-olds) consider wealth in non-material terms, compared to one-third (35 per cent) of those aged 35-44. When it comes to high-earning 18–24-year-olds, one-third believe that having a strong work-life balance is a strong signifier of wealth, and 41 per cent 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 three per cent of over 55s. This proactivity is reflected in their investment behaviour, with nearly half (43 per cent) of high earners in this group already having an investment portfolio, and less than one in five (17 per cent) of those in the nationally representative sample are aspiring to do so.
Developing regular habits
Xian Chan, head of premier wealth, HSBC UK
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. We want them to take control of their futures, and start building towards their aspirations – whether they’re already on their wealth journey, or just starting out.”
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