You may not feel rich, but if you are a middle-aged man earning more than £65,000 a year while dabbling in shares and buy to let, then it’s likely you are.
Earning a fortune is not the only measure of wealth, according to a new survey.
The research has profiled Britain’s wealthy and found that they are likely to be:
- Male and aged between 46 years and 54 years old (24%)
- Employed (59%)
- Married or in a civil partnership (55%)
- Earn an £65,810 a year and have an annual household income of £86,170
- Own property worth £737,220
- Have investments and other assets valued at £687,790
- Live in London (18%) or the South West (12%)
Cut above average
The biggest expense for the wealthy is a mortgage, although three out of four own their home outright and a fifth also own at least one investment property.
As a comparison, the average UK income in July 2016 was £34,576 a year, while a third own their home without a mortgage and one in 10 own buy to let investments.
The report, from Lloyds Bank, also revealed the wealthy are more likely to invest in shares (41%) and bonds (24%) – which is at least three times the national average.
One in four consult a professional financial adviser at least four times a year, but an equal amount has never taken advice.
Despite the findings suggesting otherwise, only 2% of people say they feel wealthy, while 36% are ‘comfortable’ and 37% are ‘Jams’ – just about managing.
Lifestyle plays a part
“Feeling wealthy is about more than just the amount of pounds people have in their pocket to spend. We know that in particular homes, but also cars, investments and lifestyle also play a part,” said Sarah Deaves, private banking director at Lloyds Bank.
“Those that feel wealthy today tend to be middle aged. They have perhaps benefited from better pensions, large house price inflation, no university fees and have lived through several years of a low inflation and low interest rates.
“Given the wide range of uncertainties faced today with, amongst other things, stretching affordability for housing, education and care in later life, taking financial advice can help improve people’s perception of their wealth and how they allocate their money, no matter their income level.”