What do the top 5% of people earn in the UK?

The Reality of the Top 5%: What Does it Really Take to Be Among the UK’s Highest Earners?

We often hear about the “top 1%” and the immense wealth concentrated at the very pinnacle of society. But what about the slightly broader category of the top 5%? What does it actually take to be considered among the highest earners in the UK, and how does that compare to what you might expect? The answer, as it turns out, might be more surprising than you think.

While images of lavish lifestyles and exorbitant salaries might spring to mind, the actual figure required to break into the top 5% in the UK is arguably more grounded in reality. In 2025, a net income of approximately £87,012 is all it takes to find yourself in this elite group. Before you imagine untold riches, consider this: while significantly above the national median income, this figure paints a picture of comfortable living rather than unbridled excess.

This relatively “modest” threshold prompts a crucial question: why does reaching the top 5% feel less aspirational than we might assume? The answer likely lies in a combination of factors:

• Geographic Disparity: The UK is a nation of stark economic contrasts. Earning £87,012 might place you firmly in the top 5% nationally, but in affluent areas like London and the South East, this income might only afford a comfortable, but not luxurious, lifestyle due to the high cost of living, particularly housing.

• The “Squeezed Middle”: This income bracket often falls into what some describe as the “squeezed middle.” They earn enough to disqualify them from many forms of government assistance but still face significant tax burdens and rising living costs.

• Career Paths: The top 5% encompasses a wide range of professions. It might include seasoned professionals like doctors, lawyers, and senior managers, but also successful entrepreneurs, niche consultants, and those in specialized tech roles. This diversity highlights that reaching the top 5% isn’t confined to traditional high-paying industries.

• Perceptions and Expectations: Media portrayals often focus on the ultra-wealthy, skewing our perception of what constitutes “high income.” The reality is that the top 5% represent a segment of society that, while financially comfortable, still faces the challenges of managing their finances, planning for the future, and dealing with everyday expenses.

Furthermore, understanding this figure provides a valuable perspective on income inequality in the UK. While reaching the top 5% is an achievement, it’s important to acknowledge that a significant portion of the population struggles to earn even a fraction of this amount. This disparity highlights the ongoing need for policies aimed at promoting economic opportunity and addressing the root causes of income inequality.

In conclusion, the figure of £87,012 offers a revealing snapshot of what it takes to be among the highest earners in the UK. While it represents a significant achievement, it also challenges our perceptions of wealth and highlights the complex realities of the economic landscape. Rather than viewing the top 5% as a distant, unattainable dream, it provides a more tangible benchmark and encourages a deeper understanding of income distribution and the financial realities faced by different segments of society. This knowledge empowers individuals to set realistic financial goals and contribute to a more equitable and prosperous future for all.