An estimated £40.7 billion held in savings by individuals who have ascended the income ladder could be harnessed to stimulate the UK economy, new research suggests.
These “self-made” individuals, identified by a study from Santander UK and the Centre for Economics and Business Research (Cebr), began with modest means but now rank among the top fifth of earners in the country.
The report, based on an Opinium survey conducted in March and April, polled 2,000 people within the UK’s top 20 per cent of earners, a group typically earning an annual income of £52,000 or more.
Santander highlighted that this cohort possesses an average of nearly £40,000 in cash reserves each. However, many are reportedly not exploring effective ways to manage these significant sums.
The research also sheds light on the career trajectories of these high-earners, noting that a considerable number entered the workforce directly or through apprenticeships after leaving school, with a notable proportion working in construction and skilled trades.
The findings underscore a significant untapped financial resource for national growth.
More than a third (35 per cent) of self-made people surveyed who are working in “white collar” jobs said they are the first person in their family to work in such a profession.
More than one in four (28 per cent) people in the self-made cohort do not invest any of their monthly earnings and those who do invest typically put away 11 per cent of their income.
While nearly half (47 per cent) said they know investing is important, 22 per cent said they did not know where to start. Nearly one in 10 (8 per cent) of this cohort agreed with the statement: “Investing is not for people like me”.
Just over half (52 per cent) of self-mades grew up talking about money at home, compared with 74% of high earners in general. Less than half (45 per cent) consider themselves financially savvy or financially literate, despite one in eight (13 per cent) owning their own business.
Santander suggested that financial education should be embedded into apprenticeship schemes.
Kitty McCormick, head of wealth at Santander UK, said: “This is a story of unlocking potential. It’s more than just a missed opportunity for individual growth; bridging the investment gap among the self-mades through targeted financial education could inject billions into the UK economy, with benefits for communities and the wider economy.
“The self-mades have proved their earning potential. Now it’s time to back them with the tools, knowledge and confidence to make their income work harder for them.”
