2.5 Million Families on £100k/year Don't Feel Rich

PasturesNew

Are you somebody who doesn't realise just how rich you really are?

To me "rich" is anybody who pops into the upper tax bracket ...

http://www.dailymail.co.uk/news/article-1233761/Families-100-000-year.html

About 2.5million families enjoy a household income of nearly £100,000 - but do not consider themselves rich, a report has revealed.

Despite their above-average pay packages, they complain of feeling broke and say they will need to earn more than £150,000 before they feel wealthy.

The survey of 1,100 professionals by the specialist insurance firm Hiscox also reveals it is not just a hefty pay rise that would make them feel better.


Only other trophies, such as a second home, a work of art or a luxury car, would make them feel they are genuinely wealthy.

Despite their complaints, a quarter enjoy at least two foreign holidays a year and have at least £25,000 in savings.

The survey asked professionals what income level would make them feel rich. On average, they said they would need a household income of £152,865, compared to their average household income of £93,000 at the moment.

Household income is either the salary of the only breadwinner in a family, or two salaries if both parents work.

The findings may surprise the majority of families in Britain who are getting by on the national average household income of about £35,000.

Income desires varied across the country. The most modest was from professionals in the South West, who said they would need £128,912 to feel really comfortable.

Those living in the North-East wanted the most, saying they would need £178,238 to feel rich

Around a third said they would also need to own more than one property to feel rich.

Others said they would not feel rich unless they had paid off their mortgage, bought a Ferrari or had more than £20,000 a year in disposable income.

But the report also revealed that the 'working wealthy' are also feeling the pinch and making cutbacks.

Many said they have slashed their spending on socialising, restaurants and holidays.

Steve Langan, managing director of Hiscox UK, said: 'Many of the working wealthy have suffered a crisis of confidence and have scaled back their spending and exposure to risk.'

Despite their desires for a big pay rise, the working wealthy say that money is not everything.

Nearly 70 per cent told researchers it was very important to be happy with what they have, citing family, health and well-being and new life experiences as top priorities.

It is my opinion that mostly people only ever mix with people in their own income groups, saying "hello" to the cleaner doesn't count as mixing with all sorts :P

To me, when I am out with friends who earn £20-25k I think they're loaded. They certainly have the spare cash to buy stuff, eat out, socialise and have holidays.

Graham_Devon

I guess it's all relative, but they don't see it that way.

With those salaries, they have probably extended themselves to a highly priced house, which costs a high price to run.

They probably have a costly car or two to run, and their holidays are probably not a haven special.

A lot of the people I work with are on over 100k a year, and you are forever hearing about how broke they are. What they don't seem to realise is that not everyone has the luxury of a wife at home bringing up the kids in a detached, large house way over the 600k barrier, with a new car every 3 years as the "shopping car" and a property in Spain.

And let's not forget the heavy taxation.

So it's very relative on what you are used to in life, imo.

_gav_

We all live to our own means of poverty. I guess you can never have enough :-)

C_Mababejive

I dont see much point in earning to a level which tips you into the 40% bracket.

Whats the point of working for half pay??

The_White_Horse

anyone who bought property post 2003 will not feel rich. I would feel rich on what I earn if I had no mortgage to pay.

people who bought 2003 onwards have been shafted for their entire lives. the leftys should have raised IR's in 2004 by 2%. We would all be better off now.

purch

Despite their above-average pay packages, they complain of feeling broke and say they will need to earn more than £150,000 before they feel wealthy

Apparantly all the people earning £ 150,000 pa, said they would need to earn £ 250,000 before they felt wealthy.

Conrad

Well Iearnd about £150 some years, but did'nt feel remotely rich. Income is transient anyway. I'd feel rich with maybe with £1m in the Bank and no mortgage.

There is tons more wealth about than is generally realised. Most of my self employed shop keepers and so on net well over £100k pa. Even in a scruffy place like Barking, there are many streets with massive expensive homes.

Typcially my self employed clients taxable earnings are kept very low, so any income census is meaningless. For example I have a client with a £2m home that owns several market stalls, and pays ZERO income tax.

System

Graham_Devon wrote: »

I guess it's all relative, but they don't see it that way.

With those salaries, they have probably extended themselves to a highly priced house, which costs a high price to run.

They probably have a costly car or two to run, and their holidays are probably not a haven special.

A lot of the people I work with are on over 100k a year, and you are forever hearing about how broke they are. What they don't seem to realise is that not everyone has the luxury of a wife at home bringing up the kids in a detached, large house way over the 600k barrier, with a new car every 3 years as the "shopping car" and a property in Spain.

And let's not forget the heavy taxation.

So it's very relative on what you are used to in life, imo.

Wow I agree with Graham! People scale their lives to their income, probably don't realise how much dosh they spend in the first place.

the_ash_and_the_oak

C_Mababejive wrote: »

I dont see much point in earning to a level which tips you into the 40% bracket.

Whats the point of working for half pay??

you are only taxed at 40% on the pay over the threshhold. your pay doesn't go down

zygurat789

Conrad wrote: »

Well Iearnd about £150 some years, but did'nt feel remotely rich. Income is transient anyway. I'd feel rich with maybe with £1m in the Bank and no mortgage.

There is tons more wealth about than is generally realised. Most of my self employed shop keepers and so on net well over £100k pa. Even in a scruffy place like Barking, there are many streets with massive expensive homes.

Typcially my self employed clients taxable earnings are kept very low, so any income census is meaningless. For example I have a client with a £2m home that owns several market stalls, and pays ZERO income tax.

I hope you aren't his accountant!

Out,_Vile_Jelly

I wonder how many of these "poor" rich folks are spending hefty sums on private education for their offspring?

I met some double-barrelled types recently whose eldest had failed to get the requisite A Levels for his first or indeed second choice of uni after a lifetime at boarding school. A lot of money down the drain there then; I thought they all got straight As these days and any thicko could get a degree.