Average Net Worth by Age in the UK (Explained Simply)

Understanding average net worth by age can help you see where you stand compared to others. But averages can be misleading—medians often tell a more useful story. This guide explains what UK net worth statistics mean, why medians matter more than averages, and how to use benchmarks without feeling discouraged.

Average vs Median: Why "Average" Can Mislead

When you hear "average net worth," you might think of the mean (add up everyone's net worth and divide by the number of people). But this can be very misleading because a small number of extremely wealthy people can skew the average upwards.

The median is often more useful. The median is the middle value—half of people have more, half have less. If the median net worth for 40-year-olds is £150,000, that means half of 40-year-olds have more than £150,000 and half have less. This gives you a better sense of what's typical.

For example, imagine ten 30-year-olds with net worths of: £10k, £20k, £30k, £40k, £50k, £60k, £70k, £80k, £90k, and £5,000,000. The average is £550,000, but the median is £55,000. The median better represents what's typical.

When looking at net worth statistics, always check whether they're using average (mean) or median. Our wealth checker uses percentile-based benchmarks that give you a clearer picture of where you stand.

What UK Wealth Stats Usually Include

Official UK wealth statistics (like the ONS Wealth and Assets Survey) typically include:

• Financial wealth: Cash, savings, investments, ISAs
• Pension wealth: Workplace pensions, personal pensions, SIPPs
• Property wealth: The value of property minus mortgages
• Physical wealth: Vehicles, valuable possessions (though this is often a smaller component)

They typically exclude:

• Future state pension entitlements (though private pensions are included)
• Some types of debt (student loans are sometimes excluded or treated separately)
• Business assets (for business owners, this can be significant)

When comparing yourself to statistics, make sure you're calculating net worth the same way. Our wealth checker lets you choose whether to include pensions, so you can match how official statistics are calculated.

Typical Patterns by Age Band

Net worth generally increases with age as people accumulate assets, pay down debts, and benefit from compound growth. Here's a rough guide to typical patterns:

20s

Many people in their 20s have negative or low net worth. Student loans, early career salaries, and saving for a house deposit mean wealth accumulation is just beginning. Having a positive net worth in your 20s is a good start.

30s

By your 30s, many people have bought property (building equity), started accumulating pension savings, and have some cash reserves. Net worth often ranges from tens of thousands to low hundreds of thousands.

40s

Property equity and pension values typically grow significantly in your 40s. Many people are in their peak earning years. Net worth often reaches several hundred thousand pounds.

50s

Peak accumulation phase. Property equity may be substantial, pensions have grown over decades, and many people have significant savings. Net worth often reaches several hundred thousand to over a million.

60s and Beyond

Retirement planning phase. Net worth may peak or begin to draw down depending on circumstances. Some people continue accumulating, while others start spending down their wealth.

Remember, these are broad patterns. Individual circumstances vary enormously based on location, career, household size, and life choices.

Net Worth by Age: Typical Ranges

The table below shows typical net worth ranges by age band. These are rough rules of thumb based on UK patterns, not official statistics. Use them as general guidance, not precise targets.

Note: These are rough rules of thumb, not official statistics. Individual circumstances vary based on location, career, household size, and life choices. Use our wealth checker to see how you compare to more specific benchmarks.

How to Use Benchmarks Without Feeling Rubbish

Comparing yourself to averages can be demotivating if you're below them, or create false confidence if you're above them. Here's how to use benchmarks constructively:

1. Focus on Your Own Progress

The most important comparison is you vs you over time. Is your net worth increasing? Are you moving in the right direction? That matters more than where you rank compared to others.

2. Consider Your Circumstances

Location matters enormously. Someone in London with £200,000 net worth might feel less wealthy than someone in Manchester with the same amount due to higher costs. Career path, household size, and life choices all affect net worth.

3. Use Benchmarks as Motivation, Not Judgment

If you're below average for your age, use it as motivation to improve your savings rate, increase pension contributions, or pay down debt. If you're above average, don't become complacent—keep building.

4. Remember What You Can Control

You can't control your starting point, but you can control your savings rate, spending habits, and investment decisions. Focus on what you can influence.

5. Look at Percentiles, Not Just Averages

Percentiles (like "top 25%" or "top 10%") give you a better sense of distribution than averages. Our wealth checker shows you where you rank using percentiles, which is more useful than comparing to a single average number.

Next Steps

Understanding averages is useful, but the most important thing is tracking your own progress. Here's what to do next:

1. Calculate your net worth: Use our wealth checker to see where you stand compared to UK benchmarks for your age.
2. Identify gaps: If you're below where you'd like to be, identify the biggest opportunities (increasing savings rate, maximising pension contributions, paying down debt).
3. Set goals: Based on your circumstances, set realistic net worth goals for the next 5-10 years.
4. Track progress: Recalculate your net worth quarterly or annually to see if you're on track.
5. Use tools: Our budget planner can help you free up money for savings, and our pension calculator can show you how to boost retirement savings.

Remember, building net worth is a marathon, not a sprint. Consistency and time are your greatest allies.

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