Is 80K A Good Salary in the UK?

Often, folks ask me… is 80K a good salary in the UK? Well… let me tell you, defining a ‘good’ salary is like trying to pick out a perfect pint in a brewery. Everybody’s taste differs and what’s enough for one isn’t necessarily quite right for the other. It all boils down to one’s lifestyle, expenses, expectations, and, of course… how much you’re planning to set aside every month for that turn-the-world-upside-down vacation to Bora Bora (I highly recommend it by the way).

Let’s dive in and take a bite out of this big ol’ financial pickle…

 

To start with, according to the UK’s Office of National Statistics, the median (let’s learn to love the word ‘median’, it’s nicer than ‘average’ really)… the median gross annual wage is around £30,420, if we’re talkin’ full time employees.

 

The UK’s average full-time salary, which is roughly £38,600, according to the Office for National Statistics. Remember, friends… this puts you in the top 5% of income earners in the UK, which… well, I don’t know about you, but that makes me feel a bit like royalty… budget royalty, of course!

A matter of location

Well, the answer largely depends on your lifestyle and location. If you’re in London, where the cost of living is famously high… you may not feel as flush as someone with the same salary living in Manchester or Birmingham… where living is more affordable (and the curry… oh the curry is way better, in my humble opinion!).

Location	Average Cost of Living per Month
London	£2,500
Manchester	£1,500
Birmingham	£1,300

Considering the costs

Also, keep in mind that the costs for different aspects of life…such as housing, food, taxes (ugh, the less said about taxes the better), and the occasional trips to your favourite pub… can vary widely between regions. So, even if you are in the top 5% of earners, an £80k salary doesn’t necessarily translate to opulent living everywhere across the UK.

How much tax will I pay if I earn £80K in the UK?

So here’s where it gets a bit tricky… you see, the taxman in the UK is always eager to get his share of your hard-earned £80,000 salary. But don’t fret just yet! Let’s roll up our sleeves and dive into this together.

Alright, for the tax year 2021/2022, the first £12,570 of your income is your personal allowance. This means it’s free – nary a pence, not a penny, nothing… will be taken from that portion. Consider it a nice little gift from the UK government (which doesn’t happen often, so enjoy!).

Then, the remaining £67,430 is subject to different band rates. From £12,571 up to £50,270, it’s taxed at the basic rate of 20%. I’ll spare you the math… that’s roughly £7,540. Heck, that’s a pretty good vacation, isn’t it?

Now… between £50,271 to £80,000 (the rest of your salary), you’re in the higher rate band, taxed at 40%. That’s… alas… another roughly £11,892 out of your pocket.

Ultimately, if you’re making £80k, you’d end up paying a total of about £19,432 in taxes. Yep, that’s a hefty chunk, I won’t sugarcoat it. But, it does go towards keeping those lovely red double-decker buses running on time, and the roads free from potholes, right?

Mind you, these figures can change based on your personal circumstances. There are also other things like National Insurance to consider… but hey, that’s a topic for another day. So, how does that neat £80k figure look now? A little different, maybe? Don’t worry, we’ll dig into what that means for your daily life next…

Income	Basic tax rate (20%)	Higher tax rate (40%)	Total Tax
£80,000	£6,500 (on first £32,500)	£19,000 (on next £47,500)	£25,500

Now, that’s quite a chunk of change, right? Remember, though, tax is what funds our schools, road maintenance, public services… all that good stuff. So while it might seem like a lot, it’s also doing (in theory) a lot of good!

Comfortable life but…

Ultimately, an £80K salary in the UK is a good salary, and above-average by a significant margin. You’ll enjoy a comfortable life with such an income… but it’s important to factor in your personal desires, lifestyle, and where you call home… because, let’s face it, we all have different tastes in curry, right?

Living in the heart of London

Now, let’s put this into perspective… If you’re planning on living in the heart of London, that 80k might seem a bit less impressive. Oh don’t get me wrong, you aren’t exactly scraping pennies together. But with the price of rent and all the extra little costs London piles up (those pints after work aren’t cheap either folks), your lifestyle may not be quite as luxurious as if you were living somewhere like… let’s say, Lincoln or Leeds.

Enjoying life in Leeds

Ah, Leeds! Now, there’s a place where your 80k will let you really enjoy life. A spacious home, perhaps even with a garden? Regular nights out, a high-end TV and broadband package, and maybe even enough left over to fund your annual Spanish vacation! See, the city you choose to live in matters, and it matters a lot. Cost of living ain’t no joke!

Indulge but consider budgeting

But irrespective of where you choose to live, an 80K salary will generally give you the freedom to live comfortably, might even indulge a bit here and there! Though, let me tell you… in the world of artisanal coffees and expensive gym memberships, ‘indulging’ can soon become scarily extravagant!

Manage your salary wisely

Ultimately, it’s not just about the number on your pay check, it’s what you do with it that counts. It’s important to set up a budget and stick to it, set out your priorities, whether that’s travel, fancy restaurants or monthly bubble bath splurges (hey, you do you!).

What is the average salary in the UK by age and profession?

Okay, so let’s settle into this topic by saying… money talks – but it says different things in different voices depending on your age and career, right? If you’re a quiet whisper in the realm of salaries or a boisterous, brassy trumpeting depends on these two factors.

For instance, a 22-year-old stepping into their first job post-college could be looking at a median starting salary around £23,000. That’s enough to cover rent, groceries… maybe get a pint or two with mates on Friday. But definitely no caviar dreams on that budget.

But let’s say, you’ve hit your stride, you’re in your 30s to mid-40s… well, data starts to show us that most folks are earning somewhere in the ballpark of £30,000 to £40,000. Definitely a step up, room for adding some spark to life. Maybe that annual vacation to Spain? Could be possible…

And if we talk career-wise, well, some paths are paved with more gold than others, right? Like, if you’re in the medical or legal profession, your average salary can soar up to £90,000. That’s a pretty hefty chunk of change, wouldn’t you say?

On the other hand, if you’re working in retail or hospitality, you’re probably looking at around the national average, £29,000. Not a king’s ransom, but hey, as my grandmother always said, “It’s not about how much you have, but how you use it“. Smart woman, she was.

And folks, take note that these figures, well, they’re averages. Which means some folks are earning less, some folks are earning more. Life’s kinda like a lottery that way…

Age group	Profession	Average Salary (£)
18-21	Market Analyst	23,000
22-25	Software Developer	31,000
26-30	Architect	40,000
31-35	Finance Manager	57,000
36-40	Marketing Director	69,000
41+	CEO	100,000+

Interesting Stats

1. The average salary in the UK is £29,000, making £80,000 significantly higher than the national average.

2. Only 5% of UK workers earn a salary of £80,000 or more.

3. The top 5% of UK earners bring in over £140,000 per year.

4. In London, the average salary is £37,000, making £80,000 a high earning in the capital city.

5. In comparison, the average salary in the North East of England is only £23,000.

6. The highest paying industries in the UK are finance, tech, and law, with high earners making over £100,000 per year.

7. The average wage for a doctor in the UK is £41,000, making £80,000 a much higher salary.

8. The average salary for a teacher in the UK is £26,000, making £80,000 nearly three times higher.

9. A recent study found that the average household in the UK needs to earn over £80,000 a year to be considered in the top 10%.

10. According to a survey by recruitment firm Robert Walters, 30% of UK professionals expect to earn over £80,000 within the next five years.

11. In 2018, the average salary for a full-time employee in the UK was £36,611, making £80,000 significantly higher.

12. The gender pay gap in the UK means that, on average, men earn £8,000 more than women per year, making £80,000 a higher salary for women.

13. A 2019 survey by Glassdoor found that the average salary for a software engineer in the UK is £45,000, making £80,000 a high salary in this field.

14. The average salary for a marketing manager in the UK is £42,500, making £80,000 a high salary in this industry.

15. In the UK, around 15% of households earn over £80,000, putting them in the top 10% of earners.

16. According to a survey by salary benchmarking site Emolument, only 7% of UK employees earn £100,000 or more per year.

17. The average salary for a CEO in the UK is £97,083, making £80,000 significantly lower than the top position in most companies.

18. In 2018, the top 1% of earners in the UK brought in an average salary of £253,927, while the top 0.1% earned over £500,000 per year.

19. A study by the Institute for Fiscal Studies found that the top 10% of households in the UK earn over £81,000 per year.

20. Based on 2017 data, £80,000 would put an individual in the top 5% of earners in the UK.

The verdict

So, if you’re earning 80k a year in the UK, give yourself a pat on the back; you’re doing well! But remember… life’s not all about the money, honey. As the old saying goes, the best things in life are free. And trust me, there’s a lot to love about life in the UK that doesn’t cost a pretty penny.

 

Is 80K A Good Salary in the UK?