Record 1,000 UK Under-30s Earn Over £1m, Influencers and Tech Drive Surge

Record 1,000 UK Under-30s Earn Over £1m, Influencers and Tech Drive Surge

HMRC figures have unveiled a striking trend: a record 1,000 taxpayers under the age of 30 earned more than £1 million last year. This represents an 11% increase compared to the previous year, highlighting a significant shift in wealth accumulation among younger generations.

Key Drivers Behind the Increase

According to accountancy firm Lubbock Fine, which obtained the data from HMRC, this surge can be attributed to several factors. Influencer marketing on platforms like Instagram, TikTok, and YouTube is a major contributor, with social media stars commanding substantial fees for promotional posts.

Additionally, higher salaries in technology and financial services, along with lucrative pay deals for sports, music, and media personalities, have fueled this growth. In total, these young high earners took home over £3 billion in the past year, averaging £3 million each.

Notable Examples of Young Millionaires

Under-30s now account for approximately 3% of all individuals earning £1 million or more annually. Prominent figures in this bracket include:

• Erling Haaland, the 25-year-old Manchester City striker, estimated to earn £525,000 per week, equating to about £27.3 million annually.
• Molly-Mae Hague, a 26-year-old influencer and former Love Island contestant, who reportedly commands up to £60,000 per social media post.

Rapid Growth Compared to Older Age Groups

The number of very high earners under 30 is increasing at a much faster pace than their older counterparts. Overall, there are now 31,000 taxpayers earning £1 million or more per year, but this represents only a 1% rise from the previous year.

Since the pandemic, the number of under-30s in this income bracket has surged by nearly 70%, up from just 650 young taxpayers recorded by HMRC. Over a similar period, spending on influencer marketing in the UK tripled to £917 million and is projected to exceed £1 billion this year.

Challenges and Warnings for Young High Earners

Russell Rich, head of sports and entertainment at Lubbock Fine, cautioned that earning substantial sums at a young age does not guarantee lifelong wealth. "Footballers, boxers, and sports people generally tend to live beyond their means when they retire," he told the Times. "People in the arts also do not tend to be good at saving and investing the money they make."

Older Generations Joining the Influencer Wave

While young people dominate the high-earning landscape, older generations are also tapping into their earning potential as influencers. Research from media analysts Ampere indicates that individuals aged 55 to 64 are experiencing the highest growth in YouTube traffic, with increases of 20% in the US and 14% in the UK since 2020.

TikTok has seen a 16% rise in British users within this age bracket over the past year. Minal Modha, head of Ampere's consumer research division, noted, "We've been seeing this trend over the last few years where older audiences who have traditionally [focused on] linear and broadcast TV have been digitising."

High-profile older influencers include Caroline Idiens, a 53-year-old personal trainer with 2.4 million Instagram followers, and Valerie Mackay, 62, who shares content about life as an older woman. However, their reach still falls short compared to younger stars like Abby Roberts, a 24-year-old makeup influencer with 15 million TikTok followers, earning an estimated £14,000 per post.