How wealthy do you feel?

March 31, 2025

A recent report from HSBC looks at changing attitudes towards wealth: what we see as ‘wealthy’, attitudes towards saving, spending and investing, and how confident we are in our ability to meet our financial goals. 

With so much uncertainty in the world, it’s not surprising that many of us feel less in control of our future than we’d like to be.

At Talis IFA, we take time to understand what money means to you, and to help you achieve your goals with the financial resources you have. We can’t change the past, but we can help you identify what financial freedom means to you, and map out the steps to help you achieve it.

Let’s take a look at some of the key themes of the HSBC report.

• What is the ‘wealth perception gap’?

The ‘wealth perception gap’ refers to a disconnect between how people perceive their own financial status and their actual financial standing. This phenomenon is influenced by factors such as rising living costs, social comparisons, and personal financial goals.

The HSBC ‘defining wealth’ report highlights this gap, revealing that while in the UK an annual income of £213,000 (over six times the national average salary) is considered as the threshold for wealth, individuals earning over £100,000 often don’t identify as affluent. In common with people from every income bracket, high earners tend to underestimate their financial position relative to others, with some perceiving themselves as part of the ‘squeezed middle’, despite being in the top 4% of earners.

This paradox highlights the psychological aspects of wealth, where subjective feelings of financial security and societal pressures play a significant role. 

 

• What do we see as markers of wealth? 

Perceived markers of wealth vary slightly according to income bracket, with some respondents to a YouGov survey of 2000 UK consumers seeing private jets and yachts as a sign of wealth, and others considering that foreign holidays, or having a cleaner, are key signifiers. For 10%, having a kitchen island marks you out as wealthy!

Top of the list of signifiers are having investments, and owning an additional property. Younger respondents tend to view a strong work-life balance as indicative of wealth.

Although many of those earning over £100k a year didn’t perceive themselves as wealthy, that didn’t necessarily stop them having significant financial aspirations, with achieving a comfortable retirement being a top goal for 48%. 

Source: define-wealth.pdf

 

• How on track do we feel when it comes to our financial goals?

However, while the aspirations are clear, only 44% of high earners (those earning over £100k a year) were confident that they were on track to meet their wealth goals, with that figure dropping to only 21% of the general population (those earning less than £100k a year).

• What are the key ways to build wealth?

At Talis IFA, we advocate a ‘get rich slow’ mindset; meaning you should start early, think long-term, and avoid the temptation of knee-jerk reactions to short-term changes in the financial markets.

We’re pleased to see that HSBC agrees with us, suggesting four pillars to a wealth-building strategy:

1. Start early and think long-term, developing a regular savings habit and considering carefully what will help your money to grow over time.
2. Regular reviews of your savings and investments
3. Consider a range of wealth-building tools – depending on your circumstances and stage of life, ensure you have a balance of long-term and easy access savings vehicles to meet your needs
4. Seek professional financial advice to help you navigate the financial world and make more confident decisions.

To speak to a Talis IFA about our ‘life-first, money-second’ approach to helping you build your wealth, improve your confidence in your ability to achieve your financial goals and enjoy financial freedom find an IFA here.