How much do you need to earn to feel rich?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 28 February 2025

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

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Summary

If you earn a six figure salary then you have a far bigger income than most of the population.

That's a multiple of the £37,500 median full-time salary and represents the kind of money that most people will only ever dream of.

But would that equate to feeling rich? The cost of living and tax mean that increasing numbers of six figure earners are saying they aren't that wealthy.

And surprisingly, more people seem to be agreeing with them - a recent This is Money poll of 7,600 people showed that 71 per cent thought you needed to earn at least £150,000 to be wealthy, while 25 per cent thought you needed to be on more than £500,000.

On this episode of the This is Money podcast, Georgie Frost and Simon Lambert discuss what it takes to feel rich and why so many people on big salaries now don't.

Also on this episode:

Why Generation X are falling behind on pension saving and what they can do to improve things.

Is it time to fix your energy bills as the price cap rises again?

And Carol Knight, of TISA (The Investing and Saving Association) on why cutting the cash Isa allowance would be a bad move and wouldn't even boost investing.

Transcript

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0:00.0	Welcome to This Is Money podcast sponsored by Charles Stanley Direct. I'm Georgie Frost and joining me today is Simon Lambert.
0:08.9	And coming up, does earning a hundred grand a year make you rich? Well, technically yes. So why does so many people say no?
0:16.7	This is Money spoke to a top psychologist who has some tips on how to feel wealthier, whatever you earn.
0:22.2	Also today, when do you think you'll have to keep working until, less than a third of Gen X are on track for a good retirement?
0:29.2	Energy bills are on the way up.
0:31.1	To fix or not to fix, that is the question.
0:33.9	And slashing cash-eisers won't make savers by shares.
0:37.4	Simon has been speaking to top investing expert Carol Knight.
0:40.9	Don't forget you stay up to date with all the latest breaking money news.
0:43.7	Just go to this ismoney.com.uk or download the app.
0:47.4	Take control of your finances with Charles Stanley Direct.
0:51.5	Invest, save, coach or plan. using technology where it's helpful and people where it matters.
1:00.0	Our website and app make trading cost-effective and flexible, but we're more than just an online investment service.
1:06.0	We're here for you regardless of your financial needs or if your life takes an unexpected
1:11.6	term.
1:12.6	Your finances, your way.
1:14.6	Take control today with Charles Stanley Direct.
1:18.6	Sign up now.
1:19.6	Investment involves risk.
1:20.6	But first, as much as Simon bangs on about the tax implications of earning
1:25.6	£100,000, it is still a very decent wage. You are in the top of the top of the tax implications of earning 100,000 pounds, it is still a very decent wage.
1:30.8	You are in the top 4% in the country of wage earners and on three times what the average
	...

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