Your net worth is the single clearest measure of your financial health. Add up what you own — property, savings, pensions, investments — subtract what you owe, and see your total wealth at a glance.
Assets minus liabilities
Net worth is simply everything you own minus everything you owe. The tricky part is remembering to include everything — especially pensions, which for most UK households are one of the biggest pots of wealth but are easy to overlook because the money feels out of reach.
| Assets (own) | Liabilities (owe) |
|---|---|
| Home & property | Mortgage |
| Savings & cash | Personal loans |
| Pensions | Credit cards |
| Investments & ISAs | Car finance |
| Vehicles & valuables | Student loan* |
*Student loans are often excluded as they're income-contingent and written off after a set period — include them only if you want the strictest view.
The two levers are increasing assets and reducing liabilities. Overpaying your mortgage shrinks debt and builds equity simultaneously; maximising pension contributions and tax-free ISAs compounds your assets. See how regular saving snowballs on the compound interest calculator.
Total assets minus total liabilities. Add up property, savings, pensions and investments, then subtract your mortgage, loans and credit cards.
ONS data puts median household net worth at roughly £300,000 including property and pensions — but it varies hugely by age and region, rising sharply through your working life.
Yes — pensions are often the largest single component of UK household wealth. Including the current pot value gives a far truer picture.
No. Net worth measures wealth at a point in time, not your earnings or cash flow. A high earner with large debts can have a lower net worth than a modest earner who's debt-free.
