You may not feel wealthy, but it’s likely if you have an Aga stove, wine fridge or underfloor heating that you are better off than you think.
A new survey suggests that many financially well off families do not realise that they have more disposable cash than many other households.
This means they often do not consider taking out enough home insurance or saving enough for retirement.
“These people are one of Britain’s 3.5 million mass affluent households, but they think they are poorer than they are because they do not feel rich,” said Selwyn Fernandes, Managing Director of LV= Home Insurance.
“A clue that you are richer than you think is spending more money on luxury goods.
What makes you mass affluent?
“It’s a good idea to take a look at your car and what you have around the home to work out where you stand in the earnings rankings and whether you are saving enough and have enough insurance.”
So what are the giveaways around the home that mean you are a mass-affluent household?
According to the insurance company they are:
- A room designated as a home office or study (37%)
- Owning a vinyl record collection (18%)
- Limited edition original artworks on the walls and shelves (18%)
- Turning over a room as play room for children (13%)
- Listening to streaming music on dedicated technology, like a Sonos network (13%)
- Under-floor heating (13%)
- Owning a nutrient extractor, such as a Nutri-Bullet (12%)
- Having a standalone wine fridge (12%)
- Building walk in wardrobes in a bedroom or dressing room (11%)
- Decorating with Farrow & Ball paint (10%)
- Cooking on an AGA or Rangemaster appliance (10%)
The survey showed homes with one or more of these items is really ‘mass affluent’ and that at least one in 10 of mass affluent homes have invested in these luxury items.
How do you know if you are mass affluent?
Financial firms have identified the segment of the population who are mass affluent as households with a disposable income of at least £50,000 a year.
The numbers differ slightly between companies, depending on if they are UK or US owned.
Some, for instance, say mass affluent households and child free, while others say not.