The short version: HENRY stands for High Earner Not Rich Yet. It describes people with good salaries who still don’t have much wealth saved up. Big income, but not much to show for it.
Who counts as a HENRY?
Typically someone earning six figures individually, or a household bringing in a combined high income. You might be earning well above average, but between taxes, mortgage payments, childcare costs, and general living expenses, there’s not much left at the end of the month.
Why does it matter?
HENRYs often feel financially squeezed despite earning more than most people. They’re too high earning to benefit from certain tax breaks or means tested support, but not wealthy enough to feel financially secure. They’re “rich workers” rather than actually rich.
What’s the tax angle?
High earners face higher tax rates and start losing certain allowances. Your Personal Allowance reduces once you earn above a threshold. You might face the High Income Child Benefit Charge. Pension contribution limits can become more complex.
The key for HENRYs is often tax efficient planning. Using ISAs, pensions, and other legitimate structures to keep more of what you earn.
Earning well but not feeling wealthy? Let’s look at ways to make your money work harder.
