Luxury watches, cars and handbags are so 2022. The wealth signifiers of 2025 are harder to spot, but at least as expensive: investments, property, and early retirement. That’s according to a 2025 report by HSBC UK, which asked 2,000 people what they considered to be signs that someone was wealthy. The top five answers for high earners were:
- Investments
- An additional property
- The ability to retire early
- Frequent overseas travel
- A private jet
Less popular signifiers included kitchen islands, cars, a big garden and having a cleaner.
There were two popular short-term aspirations among high earners: 23% wanted to take more than three holidays abroad annually, while 17% wanted to buy an investment property. Over the long term, 48% aspired to retire comfortably, 30% aimed to pay off their mortgage, 29% wanted more holidays overseas, and 20% wanted to renovate their homes. Once again, it seems that lifestyle factors and financial freedom were what people valued most.
2025 is all About ‘Post-Material’ Wealth
It’s no surprise that people now view investments, houses, and early retirement as the real luxuries. In previous generations, luxury consumer goods were super expensive while houses were relatively affordable for everyday people. Now, the cost of living and housing is extremely high, while former luxury goods like electronics are relatively cheap in comparison.
“The trend towards post-material wealth is particularly pronounced among younger demographics,” according to the study report. “Whilst almost half (49%) of Gen Z see wealth as best understood in non-material terms, this perception drops dramatically to just 35% of those aged 35 to 44. One third of 18- to 24-year-old high earners believe that having a strong work-life balance signifies you are wealthy, and 41% are aspiring to achieve this in the next two years.”
This trend might also be the result of realising that money doesn’t buy happiness:
“The switch to valuing non-material possessions often comes as people discover that the material didn’t buy them happiness, as advertising often promises. Neither did the incessant amassing of wealth,” writes HSBC’s Vicky Reynal. “As a result, I have often seen wealthier – and often older – individuals decide to prioritise what truly enhances happiness: meaningful experiences with loved ones, quality time with family instead of work, and a greater focus on health and psychological well-being.”
Are we all Underestimating our Wealth?
It’s said that comparison is the thief of joy, but we can’t help ourselves. It’s easy to look around and feel as though you’re not keeping up. The HSBC report found that people from every income bracket underestimated their earnings relative to others by about 30%.
People who earned about average felt like they were in the lowest 25%. Those in the top 20%—earning more than 80% of people—thought they were about average. And individuals earning in the top 10% felt they were only in the top 70%.
Among the respondents who were in the top 4% of earners (making over £100,000 a year, or NZ$226,000), only one in 10 saw themselves as ‘wealthy’.
In New Zealand, the gross average household annual income in 2024 was $134,599. If your household earned more than $235,000 in 2024, you were in the top 10%.
Hopefully, whatever your income level, you’ve got some investments – and not just because they’re a signifier of wealth. Whether that includes KiwiSaver, Zagga, managed funds, or property, a smart investment strategy will put you on a path towards financial independence. Talk to your financial adviser about how to develop an investment plan that’s suited to your circumstances.
