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In your thirties <\/p>\nIt\u2019s human nature to compare ourselves to others, however fruitless it may be. And nowhere is that truer than when it comes to money. <\/p>\n
As a nation we have a habit of down-playing how well-off we actually are. Research by HSBC found that nine out of ten earning over \u00a3100,000 did not see themselves as affluent, despite a six-figure income. <\/p>\n
So at what point do we consider ourselves rich, and what affects our perceptions of wealth?<\/p>\n
When it came to signs of affluence, some 10 per cent of those questioned thought a kitchen island was a marker of wealth, while a private jet, super-yacht or your own driveway were fairly undeniable identifiers. But it was having investments, extra properties and the ability to retire early that were said to be the biggest signifiers. <\/p>\n
In search of a more definitive answer, we have enlisted the help of the investment platform Hargreaves Lansdown to do some number crunching. It looked at what the top 20 per cent of earners have in savings, property wealth, pensions and income, by household and by age. Here\u2019s what we found.<\/p>\n
In your thirties <\/p>\n
Twice a year Hargreaves Lansdown and the think tank Oxford Economics analyse 16 separate measures of wealth for their savings and resilience barometer to build a picture of the nation\u2019s financial health. <\/p>\n
They found that the average household in the top 20 per cent of earners had an income of \u00a3106,566 in their thirties and had already saved \u00a3172,162 into pensions, according to Hargreaves Lansdown. They had \u00a3157,207 in property wealth alongside savings of \u00a332,253.<\/p>\n
Ollie Saiman from the advisory firm Six Degrees said most high earners who are successful in building wealth make the most of tax-efficient pensions and Isas. <\/p>\n
He said: \u201cThe dual power of using all your tax allowances and the power of investment growth compounding tax-free means that relatively small regular savings can create significant wealth over time.\u201d <\/p>\n
The limit on the annual amount you can save into a pension and still get tax relief is usually \u00a360,000, or 100 per cent of your annual earnings, if that is lower. The \u00a360,000 total includes what you get in tax relief. For a basic rate taxpayer, an \u00a380 pension contribution is topped up to \u00a3100 by the government. It costs higher rate taxpayers \u00a360 to make a \u00a3100 contribution and additional rate taxpayers \u00a355.<\/p>\n
Adults can save up to \u00a320,000 into an Isa each year and any interest earned on cash or gains made on shares are tax-free for life, unlike standard savings and investments accounts. <\/p>\n
\u2022 \u2018My parents have little money\u2019 \u2014 how inheritance is dividing Britain<\/a><\/p>\n Saiman added: \u201cWe find that wealth is typically created by leaning into your advantage or edge. Entrepreneurs typically have an edge in a certain sector and a business owner\u2019s edge might be their experience and knowledge. <\/p>\n \u201cYoung people also have an edge, which is time. It really is hard to overestimate the power of tax-free compound growth over long periods.\u201d <\/p>\n The wealthiest households in their forties had significant pension savings, with the average pot for those in the top 20 per cent of earners being worth \u00a3442,559. Liquid savings were much the same as for those in their thirties, at \u00a336,531, and they had accumulated property wealth of \u00a3272,901. It is also the age bracket at which household income peaked, at an average of \u00a3114,068.<\/p>\n With income at, or nearing, its peak, this stage of life can be an opportunity to boost pension contributions as much as possible, giving the investment plenty of time to grow before retirement. <\/p>\n Hugo Gravell from the investment consultancy Barnett Waddingham said: \u201cIf you are saving into a defined contribution workplace pension, a simple and effective way to grow your retirement savings is by auto-escalating your contributions. <\/p>\n \u201cYou ensure that your savings keep pace with your financial goals without needing constant attention, but it\u2019s important to choose an increase that aligns with your budget, for example by increasing 1 per cent each year, at every pay rise or in bonus season.\u201d <\/p>\n Some workplace schemes offer the option of automatically increasing contributions on a set date each year, while others require you to email the payroll department. <\/p>\n Hargreaves found that the wealthiest households in their fifties had an average income of \u00a3109,731, liquid savings of \u00a349,784 and property wealth of \u00a3358,548. By this stage their pension wealth had grown to \u00a3762,041. <\/p>\n As the most affluent households get older, they generally have more retirement savings than property equity because two earners in a household may each be building their own pension pot but sharing one home between them. <\/p>\n Sarah Coles from Hargreaves Lansdown said: \u201cIt\u2019s a useful reminder of why pensions can be such a key consideration in a divorce. The family home will often be a priority for people, but if they\u2019re giving up pension wealth in return, they need to be aware of the significant asset they are losing.\u201d <\/p>\n Combined pension wealth of \u00a3762,041 in a household of two earners \u2014 equal to a pot worth around \u00a3381,000 each if divided equally \u2014 was not such an impossible figure to achieve, Coles said. \u201cIf they wanted this size pension by the time they were 55 and started saving at 21, and their employer matched their contributions, they could hit the target by paying \u00a3325 into their pension each month,\u201d she said. <\/p>\n![\"Illustration](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/\/f12db9ee-74b9-4651-8752-8a186308d9c8.jpg\")
In your forties <\/p>\n![\"Illustration](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/\/e3e3186f-99f2-43a7-952c-7403377f86bd.jpg\")
In your fifties <\/p>\n
![\"Illustration](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/\/131b1a01-75ba-4a18-9da5-74add573f4de.jpg\")
In your sixties<\/p>\n