Nine in 10 Britons earning £100,000 or more a year before deductions do not view themselves as wealthy, despite being in the top 4 per cent of earners, new data claims.

On average, most Britons think an individual needs to rake in £213,000 a year before they can be considered wealthy, according to HSBC Premier's new research. 

At over £200,000, the sum most people view as the wealth threshold is over six times the national average annual salary. 

HSBC Premier's Your Money's Worth: Defining Wealth in 2025 report shows Britons typically underestimate their earnings relative to others by around 30 percentage points. 

Only 1 per cent of the population define themselves as wealthy, HSBC's analysis, which included insights from HSBC Premier customers and a broader survey of over 2,000 people, revealed. 

People earning £100,000 or more a year typically positioned themselves in the top 52 per cent relative to the rest of the population, which is just above average.

'This highlights a significant disconnect between perceived and actual financial position and hinting to how many high earners self-identify as the 'squeezed-middle'.  

According to HSBC Premier, most of its customers have, on average, five times more savings and four times more money coming in and out compared to the bank's broader customer base. 

In general, high earners place the threshold for wealth considerably higher than most and believe someone needs to earn a hefty £724,000 before tax before they can be viewed as wealthy. 

Vicky Reynal, Money Mail's financial psychotherapist, said: 'HSBC UK's findings reveal a paradox: despite having high earnings and ambitious financial goals, many mass affluent individuals still don't feel wealthy. 

'This disconnect underscores the psychology behind people's perception of wealth'

'Anxieties about rising costs, inadequate savings, and the pressure of social comparison create a sense of scarcity, even when objective wealth exists.'

I don't view myself as wealthy...

Almudena Bernabeu, 52, is a barrister and international lawyer, splitting her time between London and San Francisco.

As a director of both a legal practice and chambers, as well as the chief executive of a foundation, her earnings fluctuate between £150,000 and £300,000 per year. 

She owns properties in San Francisco, Spain, and London and has substantial retirement savings. 

Despite her income and lifestyle, she doesn't consider herself wealthy, particularly in contrast to peers earning several million per year.

For Almudena, income growth has led to lifestyle upgrades, such as private schooling for her son, buying a London flat and more holidays abroad. 

She told This is Money: 'My husband and I have prioritised our careers and this has meant we are lucky to both be earning relatively high salaries. 

'On paper, I should be able to call myself wealthy - earning between £150,000 to £300,000 each year. 

'But the reality is that I tend to compare myself to my peers, some of whom are earning two or three million pounds each year. I'd describe them as rich.'

She added: 'My financial decisions have been geared around looking after my family and making sure they have what they need, while also balancing a demanding and busy career.

'Now that I'm in my 50s, I'm really focusing on myself too – I want to make sure I'm doing the work I love, on my own terms. 

'That freedom has become more important to me. I also want to work to increase my base salary further to maximise what I'm capable of before I turn 60. And I have mortgages and credit cards to pay off. This means we can sometimes struggle with cash flow, despite being mostly sensible and progressive about how we spend money.

'I do enjoy treating myself to designer clothing, bags or shows periodically. We eat out quite regularly and like to keep fit and healthy - we prioritise organic food and working out.

'As a woman, I've always looked at my wealth holistically and its bearing on my life overall. Throughout my life, and particularly as my wealth has increased, I've tried to consider how what I have can help to benefit my kids, my husband, my parents. 

'I'm not sure men think as comprehensively as women do when it comes to their wealth.

'To younger women, my advice is to never abandon or postpone your dreams, trust your instincts, dream hard trust your mind, step strong and go for it all.'

What constitutes wealth where you live?

The data from HSBC Premier provides an insight into how people in different parts of the country perceive wealth. 

According to the research, people in the North East of England perceive an annual gross income of £80,000 a year as the wealth threshold. In Northern Ireland, the sum rises to £93,000.

In the West Midlands and Yorkshire and the Humber, people are viewed as wealthy if they have an income of £106,000 and £153,000 a year. 

However, in other regions, the amount of money viewed as bringing someone into the realms of wealth is considerably higher. 

At £367,000, the wealth threshold is highest in the south east England, with the south west coming in not far behind, at £363,000. London's 'wealth threshold' is lower, at £289,000. 

HSBC Premier said that in 'regions where wealth thresholds are higher, household wealth is higher.'    

What do rich people want?     

Among high earners, just under half said their main goal was to make enough money for a comfortable retirement. 

Thirty per cent said they were prioritising home ownership, while 20 per cent said they wanted to make significant home improvements.

HSBC Premier added: 'But the need to prioritise more immediate costs (27 per cent), insufficient savings (11 per cent), and unpredictable income (14 per cent) remain challenging, even for this more affluent group.'

While around half of the population said they believed owning a private jet or a yacht were the main signifiers of wealth, high earners were more likely to consider 'non-material factors', like retiring early, having investments, or travelling a lot, as more relevant symbols of wealth. 

Just under half of people said they believed holding investments was a key wealth indicator. According to the findings, 55 per cent of people earning over £100,000 a year or more before deductions have investments, compared to just 18 per cent in the broader population. 

There is, the research suggests, also a disparity among different age group in terms of what makes someone wealthy.

HSBC Premier said: 'Almost half (49 per cent) of Gen Z (18–24-year-olds) consider wealth in non-material terms, compared to one third (35 per cent) of those aged 35-44. 

'When it comes to high earning 18 to 24-year-olds, one third believe that having a strong work-life balance is a strong signifier of wealth, and 41 per cent are aspiring to this in the next two years.'

Xian Chan, head of Premier Wealth at HSBC UK said: 'Wealth is a deeply personal concept, that is dependent not only on people's objective financial position but also on how they feel about money.

'People often evaluate their sense of wealth in relation to how financially secure they feel, and how close they are to being able to achieve their financial goals. 

'But the key for everyone is in early preparation. Investments remain the most significant signifier of wealth, and adding to those gradually over the long-term is a crucial step for building towards prosperity. 

'Starting to save even a small amount regularly, and as early as possible, while developing regular habits, is one of the most important things that we can do to plan successfully for our financial futures.'