Britain's online users are feeling optimistic about their financial futures, but aren’t greedy when it comes to wealth, according to a new study by norwichunion.com, the interactive money management and investment operation established by UK insurance outfit Norwich Union.
The study, "Wired Wealth", was carried out amongst more than 1000 online Britons. More than two-thirds of those surveyed describe themselves as being financially comfortable - but two in five think that just another £5000 of savings a year would be enough to make them feel really wealthy.
If a big windfall came their way they wouldn’t blow the lot on flashy sports cars and designer clothes. Most people would use the money to pay off their mortgage and invest for the future so that they could retire early.
Four out of five are happy to make their own financial decisions in an effort to attain "wealth" and more than half of people are using the Internet weekly to research financial information.
The study identified three types of individuals, the "Strugglers", the "Comfortables" and the "Wealthies". Less than 25 per cent of people describe themselves as struggling with their finances. The Strugglers have a yearly household income of around £30,000, total savings and investments of just over £7000, a house valued at £126,000 and a car worth about £8000. Strugglers are more likely to have children living at home.
Seventy per cent of online Britons claim to be comfortable. The Comfortables' household income is only £5000 more than the Strugglers at £35,000, but they have double the amount of savings and investments (£14,000). Their home is only slightly more expensive at £150,000 and they have a car worth £10,000
Just six per cent describe themselves as wealthy even though their savings and investments – at £20,000 - are only £5000 more than the Comfortables. At £283,000 their homes are worth much more than the other groups and there’s usually a car worth about £13,000 sitting in the driveway. The Wealthies have a yearly household income of about £45,000.
Commenting on the findings, norwichunion.com managing director, Nicholas Smith, says: "Our research shows a nation of online Britons who have a clear vision of what they want their money to do for them – owning their own home and funding early retirement by investing for the future. They are focused on financial security and are increasingly using the Internet to sort out their financial needs."