Why it’s hard being a HENRY

30 July 2025

A HENRY - ‘high earners, not rich yet’ - is someone who is earning a salary of over £100,000, but is still building significant wealth and assets. They are often encumbered by the rising cost of childcare, big mortgages and the ever-increasing cost of living and our research findings have highlighted further financial challenges that they are having to navigate.

Nearly a third (31%) of HENRYs are feeling the pressure to achieve a higher income due to their lack of a safety net - this is despite higher incomes increasing their tax burden.

William Stevens

Partner, Head of Wealth Planning

Further to that, our research found that almost half (48%) of these higher earners expected to feel more financially comfortable on their current salary than they do. Find out more about how smart financial planning can help you navigate the future.

Those earning over £100,000 or more are classed as in the UK’s top 2% of earners and, for many, this will be supplemented at some point in their lives either through cash gifts from parents, or estates which have been passed on. However, our research showed that other high earners have parents who are not in a financial position to support them or grew up in lower income households. While 87% have children and 58% have partners who are financially dependent on them and almost a third (31%) have parents who rely on them for financial support. This generational support trend continues with a further 12% who are supporting younger extended families such as nephews and nieces.

Capital at risk

Please be aware that the value of your investments may fall as well as rise.

A closer look

We also take a closer look at how HENRYS compare themselves to their high-earning peers who stand to inherit some wealth from parents. Notably, nearly a fifth (18%) feel less financially secure day-to-day and 18% also feel less able to move up the property ladder. Equally, 16% admit they will struggle to maintain the same lifestyle as their peers, and 11% feel less able to make good educational choices for their children.

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Our thoughts

Head of Wealth Planning, Will Stevens shares his outlook:

“There is a common misconception that a high salary always equates to wealth. The reality today is not always the case. Those earning over £100,000 are now facing many competing financial pressures – a higher tax burden, loss of eligibility for free childcare and potentially higher mortgage costs. Meaning it is less to do with the absolute amount someone earns but rather the difference between their earnings and what they need to support their family.

The difference that inheritance can make, whether via cash gifts now or the knowledge that an estate will be divided up in time, is significant.

“For those high earners who don’t have a cash windfall from parents or grandparents to fall back on, smart use of their salary is even more important, and they should seek expert advice to maximise the potential of their earnings and help manage the tax implications of being a higher earner. Whether it is using pension contributions to manage the tax paid on earnings over £100,000 or budgeting to understand the balance between financial needs today and longer-term financial goals such as their own retirement, financial expertise at the right time will put you in best possible positioning to maximise your wealth”.

Featured in The Times, June 2025

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Methodology

2,002 UK consumers (aged 18+) who are earning £100k+ that meet the following criteria: do not stand to inherit money from parent, parents are not in a position to support them financially and did not/will not inherit money when parent(s) passed/pass away.

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