UK household average wealth rose 12% last year – but over half of us (six in 10) don’t feel financially comfortable

Our 2025 Financial Health Report carried out by Opinium on our behalf and released today, reveals a nation divided. The annual report, which provides a detailed portrait of the UK’s wealth and wellbeing, shows that, although average household wealth across savings, investments and physical possessions increased by 12% over the last 12 months, to £126,483 – largely due to pay rises, better savings rates and investment performance - many households are still struggling to manage unexpected expenses and plan for the future. 

Overall UK household wealth rises – but the wealth gap remains wide

Despite the overall average increase in UK wealth in the last 12 months, more people feel worse off (31%) than better off (21%), with seven in 10 whose situation has worsened saying the cost of living has impacted their ability to manage their money (71%). Those on lower incomes have naturally been hit hardest, with 39% of those earning up to £20,000 a year stating their financial situation has worsened, compared to 22% with incomes between £40,001-£60,000 a year and 13% of those earning over £80,000 a year.

It means that the wealth divide between those on the lowest and higher incomes currently stands at £570,864. The financial health of the nation is clearly a mixed picture. At a headline level, pay rises and better returns on savings and investments have driven an increase in average household wealth this year, but high energy, food and fuel costs continue to impact both the pound in people’s pockets and their ability to put money aside for the future. 

However, the findings also have a clear silver lining. This year’s report clearly shows just how much of a difference a financial plan can make in building better financial health, regardless of age, income or where we live. 

A financial plan builds confidence and resilience 

When surveyed this year, the research data shows that those who have a financial plan in place are, on average, £109,172 better off that those without one. Similarly, individuals earning under £20,000 annually who have a plan in place say that they are still, on average, more than £20,000 better off than those who do not. Those earning under £20k a year were £20,671 better. 

Those earning between £40,000 - £60,000 were £49,071 better off, and those earning above £80,000 were £343,931 better off. 

A financial plan builds confidence and resilience, with three quarters (76%) of those with a plan in place saying they feel financially resilient, compared to just over half (57%) who don’t have a plan.

Under 35s are more likely to have a financial plan than any other generation 

This year’s Financial Health Report uncovered another positive trend – the emergence of Gen P or Generation Plan.  Responses to the survey revealed that 52% of under 35s have put a financial plan in place (52%), compared to 28% of those over 55 and 41% of 35-54-year-olds. Those plans could include an active plan to increase savings or buy a property. Gen P engage proactively with their personal finances and take more responsibility for their own wealth and wellbeing. To increase their short-term income, 29% are selling second-hand items, 14% change jobs to increase their salary, and 15% are turning hobbies into new sources of income. And they keep a close eye on their longer-term finances too, with over half (51%) reviewing their investments, and two thirds shop around for better savings rates (64%) and ways to cut household bills (65%).

It’s great to see the younger generation – who we’ve termed ‘Generation Plan’ – leading the way and adopting a proactive approach to both short and long-term finances. Building these habits from as early an age as possible, and maintaining them through all stages of life, will stand them in good stead both now and in the future.

We still need to prioritise financial education in schools and workplaces, find ways to bridge the advice gap, and to ultimately remove the barriers that deter individuals from seeking the support they need to manage their money better. As we take extra responsibility for our own financial futures, this is more important than ever.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

Source

¹Opinium surveyed 6,000 UK adults nationwide in two polls between 23rd December 2024 and 17th February 2025. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population. 

Previous years’ research was also conducted by Opinium - among 6,000 UK adults between 16th – 25th October 2023.