Brits earning over £100k worry more about money
Six figure earners are more likely to worry about money than those on the average UK salary, according to fresh research.
Eight in ten Brits who earn over £100,000 are worried about their finanical health, new research from fintech juggernaut Revolut has revealed. This came ahead of those on the national average between £35,001–£45,000 where 75 per cent said they were concerned about finances.
A growing number of Brits who have crossed the £100,000 threshold have had their salaries chipped at over recent years.
In the 2022/23 tax year, the number of taxpayers earning over £100,000 jumped by 16 per cent to 1.35m, according to a freedom of information request obtained from tax collector HMRC by RSM.
But hitting that six figure mark has come with a gloomy aftertaste for countless Brits due to rising inflation and sharp rises in income tax.
Due to the elevated rate of inflation – which hit 3.8 per cent in August – a £100,000 salary today would only be equivalent to about £81,000 in 2021.
Alongside this, UK tax rules mean Brits lose £1 of their personal allowance for every £2 earned above £100,000.
The strain is also amplified by student loan debt, where graduates pay at a rate of nine per cent for undergraduate degrees and six per cent for postgraduate.
Brits hit by low consumer confidence
Elsewhere, the fresh findings from Revolut showed over a quarter or Brits don’t include financial wellbeing when thinking about wellness. This comes despite seven in ten agreeing their financial situation has a direct impact on mental wellbeing.
A consumer tracker by Which? showed an “alarming” drop in consumer confidence last month as Brits worried about the future state of the economy.
Confidence sank 31 points over the last year, from an average of minus nine between May and July 2024 to an average of minus 40 between May and July this year.
The figures come amid raising inflation and the expected slowing down on the interest rate cutting cycle, which have provided some modest reprieve in the last year.
A swathe of economists are projecting the Bank of England will hold interest rates at four per cent – their current rate – until at least 2026.