The number of individuals under 30 in the UK who are earning over £1 million per year has risen 33% in one year, to 400 in 2015/16 from 300 the previous year according to HMRC data provided to Salisbury House Wealth, the leading financial adviser.
Salisbury House Wealth says the rise comes as entrepreneurship grows among the UK’s millennial generation. Many of the under 30s earning over £1 million are successful start-up entrepreneurs in tech – particularly fintech – and social media.
Salisbury House Wealth adds that over the same period there were 18,300 people over the age of 30 earning over £1 million, rising by a quarter from 14,700 the previous year. Although this shows the vast majority of wealth creation continues to be among those in the higher age brackets, the number of young millionaires has risen faster.
Examples of UK millionaires under the age of 30 include:
- 22 year-old Nick D’Aloisio, a software entrepreneur who created news app Summly, and is worth £20 million;
- 19 year-old entrepreneur Akshay Ruparelia set up online estate agent Doorsteps.co.uk, and is now worth £16 million;
- 26 year-old Jack Cator built HideMyAss, a web proxy website to get around firewalls when he was 16, and is now worth £45 million
Other under 30s earning over £1 million are successful sportspeople and entertainers. These include Tottenham Hotspurs footballer Harry Kane and singers Adele and Ed Sheeran.
Salisbury House Wealth explains that pension and investments planning is essential for young high earners, to ensure the longevity of their wealth.
Tim Holmes, Managing Director at Salisbury House Wealth, says: “An increasingly strong culture of entrepreneurship among young people is ramping up the numbers of young millionaires.”
“As native users of emerging modern technology, young people are likely to be at the forefront of innovation in this area.”
“Many of these under 30 millionaires are entrepreneurs, sportspeople and entertainers. The nature of their work means that such a steady high income may not last forever.”
Tim Holmes adds: “Planning for the future is particularly vital for those high earners whose income is likely to be somewhat volatile, for example professional footballers or other sportsmen.”
“Financial advice can ensure that individuals with high incomes make the best financial decisions for their future, choosing the right savings and investment solutions available on the market.”