When making financial decisions, you may wonder how different age groups compare in wealth. In this guide, we examine the average net worth of people in the UK and where you might stand in relation to others.
Net worth is calculated using basic maths. Essentially, your liabilities are subtracted from your assets. This means any debts such as loans, mortgages, credit cards or taxes are deducted. Assets might include anything with a cash value, like financial assets, property, antiques or a car.
UK figures from before the pandemic published by the Office for National Statistics (ONS) in 2023 found that an individual’s median net worth worked out at £125,000. Taking a mean average, it stood at £305,000. The ONS Wealth and Assets survey found that the top 10% segment of the population were estimated to hold around 50% of the wealth, whilst the bottom 10% accounted for 0.02%.
Net worth average by age
When considering net worth, it is important to look beyond the overall average and break down the data by age demographics. The reason for this is that net worth usually grows as someone gets older. That individual tends to accumulate assets over time and see their savings and investments generate higher gains. Net worth calculations also factor in the value of pension pots. Again, older people will probably have more pension savings to draw from.
The ONS data specifically looked at the period from 2016 to 2020. It revealed that older people enjoyed greater wealth than younger people, much of it gained through property and pensions. The estimated total wealth average for different age groups was as follows.
The youngest tier, 25- to 34-year-olds, enjoyed an average net worth of £66,000. This rose to £196,000 for 35- to 44-year-olds, £364,000 for 45- to 54-year-olds, and £575,000 for 55- to 64-year-olds. The oldest age group accumulated pension wealth averaging at £306,000, property wealth averaging at £172,000, and financial wealth averaging at just over £62,000.
If you require wealth management services in Oswestry or Cheshire, call us at Hartey Wealth Management today to set up a consultation.
