Decoding Financial Health: A Deep Dive into Wealth Building Strategies
May , 29
What is the Average Net Worth by Age in the UK 2022?
What is the Average Net Worth by Age in the UK 2022?
Are you curious as to how your net worth stacks up to that of the average net worth by age in the UK? Continue reading to find out everything you need to know. If you have ever wondered what the average net worth is by age in the UK, you have come to the right place. In the following article, we will outline what a good net worth is in relation to age, what the net worth of the top 5% is, and what a decent net worth is. If you are interested in finding out more, continue reading.
What is a good net worth by age?
In recent years, the average net worth by age has fluctuated dramatically. In order to gain an up-to-date and accurate understanding of the subject, however, we must take a look at current statistics. If you are between the ages of 25-34, for example, the average net worth is between £85,000 and £200,000. If you are nearing the ages of 45-54, on the other hand, your net worth is far more likely to fall within the bracket of £300,000 and £500,000 whilst if you are over the age of 65, your average net worth is closer to between £500,000 and £1,000,000 which is almost double that of residents aged between 45-54.
What is the net worth of the top 5%?
In order to familiarise yourself with a well-rounded perspective of net worth in the UK, we must also take a look at that of the top 5%. If you fall within this percentile, for example, you must earn over £80,000 or more over the course of a financial year. The net worth of the country’s top earners is a little more difficult to calculate with the vast majority of high earners distributing their assets around the world and, in some circumstances, in offshore companies. Despite this, recent figures have shown that the top 5% have assets worth up to £1.7 million which includes any equity in their home as well as any pensions in their name.
What is a decent net worth?
The question of what a decent net worth is can be subject to differing opinions based on what level of affluence you are comfortable with. If you have lived comfortably on a net worth of £500,000, for example, this may sound decent to you. If you are used to a net worth of £1,000,000 or more, on the other hand, £500,000 may be unsustainable. In order to come up with a universal figure, a decent net worth can be viewed as a net worth that is greater than average. If you are a household with a total net worth of £300,000, you would find yourself in the 51st percentile and, therefore, richer than 50% of the population.
If you are wondering how the average net worth of the UK matches up to the rest of the country, it may benefit you to know that it can differ vastly depending on which age bracket you fall under, the average net worth of the top 5% is around £1.7 million and, a decent net worth is around £300,000.
