Net worth at 40 depends far more on housing, pension history and debt than on age alone. This page explains what counts, how it is usually made up and what ONS reports for Great Britain, so you can work out your own figure.
What ONS Reports
ONS measures household wealth in Great Britain by the age of the household head. In the Wealth and Assets Survey for April 2020 to March 2022, median household wealth was £15,200 for households with a head aged 16 to 24 and peaked at £502,500 for households with a head aged 65 to 74. For all ages together, the median was £293,700. ONS publishes the other age bands in a separate spreadsheet, so this page does not give a figure for age 40. See average net worth by age UK for the wider picture.
How Net Worth Is Made Up
| Component | Notes |
|---|---|
| Property equity | Home value minus mortgage; renters have none |
| Pension savings | Workplace and private pensions combined |
| Financial wealth | Cash savings and investments (ISAs, etc.) |
| Debts | Mortgage, loans, credit cards, student loans |
The Homeowner vs Renter Divide
Property ownership creates the biggest split in net worth at any age. ONS reports that net property wealth made up the largest proportion of household wealth in Great Britain (40%). A homeowner with a mortgage has equity in the property, while a renter has none there but may hold more in savings and have more flexibility.
Net worth is best read alongside your housing situation. Renting is not financial failure; it is a different asset allocation.
Worked Example
Sarah is 40 years old and lives in Manchester. She owns a flat worth £220,000 with a £140,000 mortgage outstanding, so £80,000 in property equity. She has £12,000 in a Stocks and Shares ISA, £8,000 in cash savings, and a workplace pension pot worth £70,000. She has a £4,000 car finance balance outstanding.
Her net worth: £80,000 + £12,000 + £8,000 + £70,000 − £4,000 = £166,000
What Should You Focus on at 40?
Building Foundations
Maximise pension contributions. The workplace pension you may have been contributing to for 5–10 years is building meaningfully. Consider a SIPP to supplement if you are self-employed or want more control. ISA discipline. Use your annual ISA allowance (£20,000) — especially Stocks and Shares ISAs for long-horizon saving. Mortgage overpayment consideration. Overpaying your mortgage builds equity faster, but weigh this against ISA and pension returns.
How to Increase Your Net Worth
The formula is straightforward even if execution is difficult:
- Earn more — career progression, side income, upskilling
- Spend less — budgeting, reducing fixed costs, conscious consumption
- Invest the difference — pension, ISA, and over time, property
- Avoid wealth destroyers — high-interest debt, unnecessary fees, emotional investment decisions
Use our net worth calculator to track your progress, and see average savings by age UK and average net worth by age UK for the full picture.