A report by the bank has uncovered a ‘wealth perception gap’, with nine in 10 high earners on more than £100,000 per year saying they do not consider themselves wealthy.
HSBC’s Your Money’s Worth: Defining Wealth in 2025 report found that Brits believe an average annual income of £213,000 constitutes wealth, more than six times the national average salary.
Perception gap
HSBC found the ‘perception gap’ was largest among 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.
High earners also placed 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. HSBC said this highlights a significant disconnect between perceived and actual financial positions and hints at how many high earners self-identify as the ‘squeezed middle’.
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Perceptions of wealth don’t just differ across income levels. The report reveals that there are also distinct regional differences in both wealth and the way it is perceived. Londoners surveyed said it takes more than £289,000 to be wealthy on average. Meanwhile, those in the North East say it’s an average of £80,000.
Higher earners’ financial goals
HSBC UK’s analysis revealed that high earners often have ambitious financial goals, with just under half (44%) of those with financial goals on track to achieve them. This figure 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 or homeownership (30%), or want to make significant home improvements (20%).
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.”
Key indicators of wealth
HSBC UK also studied attitudes towards signifiers of wealth. More than half (51%) of the general population identified owning a private jet or a yacht as the main signifier of wealth.
However, high earners were more likely to consider non-material factors – such as retiring early (48%), frequently travelling abroad (45%) or having investments (54%) – as more relevant symbols of wealth.
HSBC said 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 more than £100,000 have investments, this figure drops dramatically to just 18% of the general population.
Almost half (49%) of 18-24-year-olds considered 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, 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.
Xian Chan, head of premier wealth at 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.”
