Average net worth by age in the UK: how do you compare?

Search for “average net worth by age in the UK” and data from the Office for National Statistics (ONS) Wealth and Assets survey will pop up – headline figures that serve as ideal reference points to compare against. In simple terms, net worth is the total value of everything you own minus what you owe, such as a mortgage of debts. But to know whether your net worth is really ahead, behind, or roughly where it “should” be, a more detailed breakdown is essential. 

Wealth is often a heady mix of savings, possessions, investments, property, inheritance and pensions. Some of this feels real in your hands and some of it doesn’t. Some of it takes a huge effort to grow, and some of it just comes from being in the right place at the right time. That’s why you shouldn’t look at the ONS’s average net worth UK figures and simply stop there.

Take a closer look at the graphs below.

What is the average net worth in the UK?

Some estimates put the average net worth UK figure at around £380,000. But be aware; wealth inequality makes this number misleading. From April 2020 to March 2022, the wealthiest 10% of households had total wealth of £1.25mn or more, while the least wealthy 10% had a fraction of that – £16,500 or less. As the average net worth number is the mean average, it’s skewed by the richest in society. To get a fairer number for making comparisons, go by the median (the middle number) instead.

The median household wealth in Britain was £293,700 in March, 2022 (the most recent figure).

But there’s another issue too. A single national average compares everyone together, even though a 28-year-old, a 45-year-old and a 72-year-old are usually at completely different stages of their financial lives. That’s why a more useful benchmark is the average UK net worth by age.

What is the average UK net worth by age? 
 

The graph above tells the story of wealth creation over a lifetime.

Of course, younger households typically start with a much lower level of wealth. Young people are early in their careers, and naturally, most of their pay check goes towards rent, bills and other essentials, with only a little left over to put towards the future. It’s important to keep things in perspective – young people aren’t “behind” in growing their wealth. You need to walk before you can run, and incomes all have to begin somewhere. 

In your 30s and 40s, however, things should change. Your career will hopefully be motoring, so you can earn an income that allows you to take real steps to build wealth. You might get on the housing ladder, invest in the stock market or other assets, or make extra pension contributions. All good moves. And we see the average net worth by age in the UK really boom as these decisions bear fruit between the ages of 50 and 70. Property wealth could make up a huge share. Pension pots, also, have had time to build. And it’s then, in later life, that wealth is often used to fund a comfortable retirement; hence, we see it shrink again slightly.

However, for as long as we rely on averages to show us these trends, the conclusions will be skewed by the ultra-wealthy within each of the age groups. That’s why, again, median net worth by age is often more helpful. Half of households have more and half have less. Click the tab at the top of the table to see what a difference this makes to wealth for some age groups.

But even this figure has limits. 

It still represents wealth as one big total and doesn’t show where the wealth comes from. This would tell a far more valuable story about how wealth is being built by the richest and what you should be focusing on to get further ahead. After all, a household with £300,000 held mostly as equity in a flat might be advised very differently by Charles Stanley’s financial planners than a household with £300,000 spread across cash savings, ISAs and investments.

A breakdown of wealth mix by type and age in the UK

The ONS breaks household wealth into four main types: property wealth, private pension wealth, financial wealth (cash savings, investments etc.) and physical wealth (possessions). As you view the graph below, note that circle size marks the average value of that form of wealth.  
 

As we can see, pensions (workplace and personal pension wealth) and property (net of the mortgage owed) are the largest components of total wealth for people in Britain. Around three quarters (74%) of household wealth in the country is tied up in property and pensions.

Property wealth

In the case of property, each repayment on a repayment mortgage reduces the loan balance and increases the homeowner’s equity, which means their share of their home. Over long periods, many homeowners benefit in parallel from rising house prices. In fact, this has been a particularly powerful wealth driver for older generations. They got in at the right time, buying before house prices became extremely expensive relative to incomes.

House prices in London and the South East, in particular, have exploded over the past several decades. We can readily see the impact of this on household wealth. The ONS found that median household wealth was £489,800 [RM3.1]in the South East, compared with £179,900 in the North East. Clearly, geography affects the wealth picture. But in truth, property is an investment that holds its value well all around the country, even if the values are lower.

For many families, owning a home is one of the most important financial steps they ever take. It’s also one of the main dividing lines between households that have built wealth and households that have not, as the table below shows.
 

Finally, another less talked about reason why property counts for so much is because that prices tend to move less visibly day to day than other investments such as company shares. People buy their home and live in it. They don’t check its price every morning or feel the urge to react to short-term market moves. They couldn’t anyway. And that’s a good thing. That same mindset can be valuable when it comes to investing. Staying focused on the bigger picture, rather than reacting to daily market noise, is often what allows investments to grow over time.

Pension pots

Over time, pensions can become very significant. As your income grows, contributions can increase, employer payments add value, and investment returns have longer to compound. A pension is a good example of the old snowball metaphor: at first, it looks unimpressive, but with time it rolls and rolls, picking up snow exponentially until it’s too heavy to push anymore.

Being compelled to regularly contribute to a pot which benefits from growth of the markets over a long time period, without you being able to withdraw until your later years, is really what makes comfortable retirements possible. Some people say it’s the true difference between rich and poor.

The incentive to put money towards your pension is strong too. You’re granted a tax-free annual pension allowance of £60,000, meaning you can contribute greatly to your pot and receive tax relief on your contributions. You can further save on income tax through salary sacrifice into your pension, and most employers match your pension contributions up to a point.

The pension is held under lock and key until later life. The normal minimum pension age is currently 55, rising to 57 from 6 April 2028. And if you’ve searched for “average net worth by age in the UK”, you may not have had this in mind. You may be interested in more accessible wealth, which is fair indeed. Someone could have a great pension but feel short of money today, so that’s where physical and financial wealth comes in.

Read more: what is the average pension pot by age in the UK?

Financial wealth and physical wealth

Building financial wealth alongside property and pension wealth is the trick you do not want to miss. This refers to cash savings, investments in shares, bonds and other assets.

The ONS gives us a reality check here. In the ONS data, financial wealth is net of all debts except for student loans, and the median household figure was recorded at £10,400. This shows that while a household may have hundreds of thousands of pounds in property and pensions, it has much less money that’s actually accessible in the bank or in personal investment portfolios.

There could be many reasons for this. Due to the cost of living, for instance, many households don’t have large sums left over to invest in the stock market. And even if they did, investing can feel technical and full of jargon. The perception may be shifting gradually, partly as the financial sector invests in efforts to engage investors. An example of this is the government’s Invest for the Future campaign which launched in late April 2026. But still, by contrast to how investing goes over many peoples’ heads, property and pensions are far more familiar.

If you want to get this knowledge and confidence barrier out of your way and start investing, take your first steps into markets with Charles Stanley Direct. The platform offers thousands of investment options and learning resources alongside. You can even talk to a financial coach for free.

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There’s no better time to be direct about your money and start investing. ISAs can help you save and invest while shielding your gains – either interest, capital gains or dividends – from tax. You get an allowance of £20,000 each year. Get set up with a Charles Stanley Stocks and Shares ISA now: Flexible Stocks & Shares ISA | Investment ISA | Charles Stanley

Physical wealth refers to the stuff you own – your vehicles, valuables, clothes, gadgets, furniture, and so on. Your belongings could be worth quite a large sum in total, but most things in this category aren’t expected to grow in value. For example, a car may be a must-have for many people, but it normally loses value over time. 

There is debate in some circles over whether watches, jewellery, and certain luxury brands can hold or increase in value. Some might. But we recommend putting your money into things which meet the technical definition of an asset – that it’s productive in its own right. You can stare at a watch all day and it won’t multiply into a second watch. And that’s generally why physical wealth is not the engine of long-term financial security for most households.

So, are you building financial wealth? Are you confident your wealth can support your goals? If you’d like to speak to one of our financial coaches for free, you can book in a 15-minute session using the link below. No matter what stage of life you’re in, the sooner you start wealth building, the more time your money has to work for you.