UK Household wealth reaches an average of £126,483 in the last year, but six in in ten do not feel financially comfortable

• UK household wealth (excluding property) rises 12% in last year - but more people’s financial situation worsens than improves
• Wealth divide between those of lowest and highest incomes stands at £570,864
• SJP’s Financial Health Report highlights how those with a financial plan are nearly £110,000 better off than those without
• A new ‘Generation Plan’ is emerging with under 35s nearly twice as likely to have a financial plan than over 55s

UK household1 wealth across savings, investments and physical possessions has risen 12% over the last 12 months - with pay rises, better savings rates, investment performance, and paying off debts driving an improved financial picture for many.

The new Financial Health Report2 from St. James’s Place (SJP) - assessing the UK’s wealth and financial wellbeing levels - shows that, below the headline numbers, the cost-of-living strain has caused more people’s financial situation to worsen than improve. Six in ten (58%) stated that they do not feel financially comfortable.

However, while a quarter of the country (25%) reports feeling anxious about the year ahead, the research demonstrates the power of having a financial plan when it comes to boosting financial health, regardless of circumstances and particularly amongst the younger generations.

SJP’s Financial Health Report, conducted annually among adults across the UK, finds that over the last 12 months UK households have seen their wealth across savings, investments and physical possessions rise from £113,154 to £126,483 on average. Those who have seen their financial situation improve report receiving a pay rise as the main contributing factor (31%), followed by better savings rates (27%) and investment performance (21%), while 15% paid off debts.  

Overall UK household wealth rises – but the wealth divide is 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 ten 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 a fifth (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.  

Furthermore, as many as six in ten (58%) do not feel financially comfortable, with those earning less than £20,000 a year more than four times as likely to describe their financial position as struggling (23%) than those in the highest income bracket earning over £80,000 (5%).

Over a quarter (26%) say they don’t feel financially resilient (able to deal with life’s unexpected expenses) and would now need their total household wealth to increase by £61,902 to address this – up from £57,317 last year. Three in ten (31%) people across the UK have less than £10,000 in savings, investments and personal possessions, with one in ten (10%) having no safety net at all.  

Unfortunately, for a significant number of people, there’s little sign of respite in the year ahead. A quarter (25%) feel anxious about the upcoming 12 months, with rising energy bills topping the list of concerns (28%), followed by rising food bills (23%), and rising fuel costs (15%). As households plan further ahead, a fifth (20%) do not feel they are saving enough to be financially secure now and in the future.

A plan boosts financial health at every level 
Against the strain on disposable incomes, SJP’s research highlights the importance of having a plan to build better financial health. Four in ten (39%) UK adults have some sort of financial plan in place2, increasing to 60% amongst those who have received some form of financial advice over the last 10 years. Those with a plan are almost £110,000 better off – with average wealth of £191,536 compared to only £82,364 amongst households without a plan. Those that receive financial advice have seen an additional boost to their wealth, increasing it further to £236,897.

The power of a plan is also evident across all income groups, with those earning under £20k a year still £20,671 better off than those without a plan.

Having a plan in place is also found to positively impact wider financial health. More than six in 10 (65%) say having a plan makes them feel more confident in their financial position. Additionally, more than half (52%) of those with a plan describe their current financial position as comfortable compared to 36% without one, and three-quarters (76%) say they are financially resilient versus 57% who don’t have a plan.

Generation Plan – under 35s lead the way in taking control of their finances
SJP’s research finds that it is those in the younger generations who are taking more proactive steps to put financial plans in place than any other age group. The research reveals that under 35s are most likely to have put a financial plan in place (52%), compared to 28% of those over 55 (and 41% of 35-54-year-olds.)

They are also proactive. In the last year, 18–34-year-olds have taken multiple actions to increase their short-term income:
•    selling unwanted and second-hand items (29%)
•    taking on additional regular (17%) or ad hoc work (17%)
•    turning a hobby into a source of income (15%)
•    changing jobs to increase income (14%) 
•    and even monetising their social media (9%)

The majority have also taken steps to improve their longer-term finances within the last two years, with over half (51%) reviewing their investments, and two thirds checking for better savings rates (64%) and ways to make savings on household bills (65%).

Alexandra Loydon, Director of Advice Policy & Operations at St. James’s Place, comments: “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 many continue to feel the pinch when it comes to day-to-day expenses.  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, as well as widening the wealth divide further.  While this naturally impacts those on lower incomes the most, wealth can often be tied up in possessions or longer-term savings, so incomes are being stretched more widely.

“Looking ahead to the rest of the year, consumer confidence is likely to remain fragile as several factors contribute to ongoing financial pressures on households. To navigate this backdrop, it’s crucial that people take steps to make their money work harder. Our research 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.

“It’s great to see the younger generation – who we’ve termed ‘Generation Plan’ – leading the way in this regard, 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.”

SJP outlines simple steps to help build a financial plan:

1. Identify your financial goals – start by identifying what your financial goals are. Split this out by short term goals e.g., saving for a holiday and medium-long term goals, such as buying a house or saving for retirement. Once you know what you’re working towards, you can then work backwards to see the steps to take to achieve them. Identifying when you’d like to achieve these goals by and how much you need to save is key.
2. Assess your finances – track your income and expenses to see how much money is coming in and going out of your account every month. Tallying up how much you’re spending on, for example, subscription services, clothes, food etc. is a useful exercise which may help identify areas you can cut back in order to save more for your financial goals identified in step 1).
3. Build an emergency fund – if the last few years has taught us anything it’s that our financial picture can shift at a moment’s notice. Having a financial buffer to fall back on, in the face of the unexpected such as ill health or redundancy, can help keep your finances afloat and provide peace of mind in a potentially stressful time. You should aim to have three to six months of living expenses in an easily accessible account. Save some money every month to put towards your emergency fund, which will build up over time, for when you may need it. 
4. Save and invest smart – as savings rates are beginning to fall, take advantage of higher fixed-term savings rates while you can. For your longer-term goals, this can help you earn more interest and work towards your goals faster than putting all of your savings in an easy access account. Additionally, start investing to boost your income further, even if it’s just a small amount. Opening a Stocks and Shares ISA can be a good start. Ensure to diversify your       investments to spread your risk and protect against market shocks. 
5. Review your plan – personal and financial situations often change., such as when you have a new job, pay rise or start a family etc. Review your financial   plan regularly to ensure you're on track to meet your goals and adjust for any life changes.
6. Consider seeking professional advice – if you’d prefer extra guidance and expertise, particularly when it comes to more complex financial situations or         circumstances, seeking professional advice can be useful to help navigate your finances and achieve your goals.  

Notes to Editors

Full Financial Health Report is available at https://www.sjp.co.uk/financial-health-report 

1. The average number of residents per household as of 2023 ONS data is 2.36. The latest available figures are available here: Families and households in the UK - Office for National Statistics

2. Opinium 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.

3. A financial plan could include an active plan to increase savings and/or pension, or buy a property over the long-term, with an ambition and ability to act on the plan in the next 5 or so years.