In the past decade, average wealth in the UK has increased by 59% in the past decade while earnings have grown just 19%.
Britons’ average wealth is estimated to be £575,948 from £361,831 a decade ago. This is attributed to house price rises, as well as increase in pensions, investments, and physical wealth appreciating in value since 2010.
On the other hand, average earnings have only increased to £31,840.
This is according to research from Handelsbanken Wealth & Asset Management’s analysis of the latest government data on UK wealth, assets, and earnings.
Furthermore, the wealthiest 25% of the population saw wealth increase 34% faster than the British average, while their salaries increased 22% faster.
However, the wealthiest people in London saw their wealth grow by 77% over the last ten years to hit £902,400, compared to £495,200 in 2010.
PK Patel, head of wealth management at Handelsbanken Wealth & Asset Management, said: “Earnings growth has on average been constrained over the past 10 years, with most people relying on their houses, investments, and possessions to boost their wealth.
“It is fascinating to see the gulf between the increase in asset values and the increase in average earnings over the past decade, and is instructive for advisers and their clients on how to plan their finances and assess their wealth.
“No matter how your total wealth is made up, it’s important to have a clear plan on how you want to use it for your own future and for the benefit of other family members.”