People must earn a yearly salary of more than £134,170 to be considered ‘rich’, according to a survey of UK workers.
Research by jobs website Indeed shows that on average Brits only think they are rich when annual earnings exceed £134,170. This is almost five times the UK’s average wage.
However, this figure masks both generational and regional divides. For example, those aged between 18 and 24 say they would classify anyone earning over £87,750 as wealthy. For those over 65 this figure is £144,429.
On a regional basis, people in the South East of England have higher definitions of wealth than anywhere else in Great Britain. Those in the South East believe you must earn £162,844 to be considered rich. This compares to workers in Wales who believe anyone earning over £91,681 is wealthy.
Area of Great Britain and the annual salary perceived as rich:
- South East £162,844
- London £149,180
- Eastern England £141,807
- Yorkshire & Humberside £136,081
- West Midlands £134,747
- North West £130,504
- North East £127,773
- Scotland £123,241
- East Midlands £120,192
- South West £112,023
- Wales £91,681
The region which has the largest gap between wealth perception and local wage levels is Yorkshire and Humberside, Indeed suggests. People in this area only believe those earning £136,081 are rich, even though earning more than £47,584 would put you in the top 10% highest earners locally.
‘Wages have stagnated’
Mariano Mamertino, economist at Indeed says UK wage growth has fallen behind comparable European countries.
“The labour market is creating jobs at a steady rate and unemployment is at its lowest level for more than four decades,” he says. “But wages have stagnated and British output per worker continues to languish below international trends and far behind that of many other European countries. The gap between earning the UK average wage of £28k and earning £80k will feel hard to bridge for many.
“The research also shows major differences in salary expectations between baby boomers and millennials, which reflect their respective position at very different stages of the working career.”