There is no doubt that £70k is an amazing salary in the UK. However, you may be wondering what percentile of earners £70k puts you in. How well are you performing in comparison to the rest of the population?
In this article, we are going to show you where you stack up against your counterparts when earning a £70k salary. Using the most recent government data we can find out exactly how well you are doing. Let’s jump in.
What Percentage Of Individuals In The UK Earn £70k Or More?
In the UK the data shows that earning over £70k puts you in the top 7% of earners in the country. This is the equivalent of 93rd percentile. If you are earning £70k or more per year you are earning more than 93% of the working population in the UK.
This chart was created from the latest government data on percentile points of the income distribution.
What Is £70k After Tax
If you have landed a £70k per year job, you’re doing great! However, you won’t be bringing all of that home. The government wants their cut in the form of Income Tax and National insurance.
On a £70k salary, you will be in the Higher Rate Tax band. This means you will get your free allowance of £12,570, pay 20% on income up to £50,720, and finally pay 40% tax on the remaining £19,280.
Many people think you will pay 40% of your total income if you enter into the higher rate. This is incorrect. You will only pay 40% on any income above the initial £50,720.
On a £70k salary, you will pay £15,432 in Income Tax and £5,993 in National Insurance.
This leaves you with a net take-home pay of £48,575 per year or £4,048 per month.
Is £70k A Good Income In The UK?
The average full-time salary in the UK is £33,280. If you earn £70k, that’s more than double the average. Well done!
In London, £70k might not stretch as far, but it’s still enough for a comfortable life. Sharing rent can boost your savings, potentially letting you retire early.
In short, a £70k salary in the UK is impressive. Spend wisely and you’ll live prosperously.
How Can You Earn £70k Per Year?
If your goal is to earn £70k per year, you will need to take a career path that leads to a job paying this amount or more. Let’s take a look at some of the best careers to get into if you want to make over £70k. In the £50k range, you can enter a wide range of fields and still eventually end up with a £50k salary, however at £70k your options start to narrow down and you need to be intentional about the career path you take.
Here are a few different career options to reach a salary of £70k:
- Medical Professionals:
- Consultants (specialized doctors) in the NHS and private sector
- General practitioners (with significant experience or those owning their own practices)
- Legal Professionals:
- Solicitors (especially those working in large London-based firms or specialists in areas such as corporate law, mergers & acquisitions, etc.)
- Barristers (especially those in high-demand specialties)
- Finance & Banking:
- Investment bankers
- Asset managers
- Financial directors
- Senior financial analysts
- IT & Technology:
- IT directors or Chief Information Officers
- Software development managers
- Senior cybersecurity specialists
- Solutions architects
- Data scientists with significant experience
- Senior engineering managers or directors
- Experienced engineers in specialist fields, such as oil and gas, aerospace, or nuclear engineering
- Management & Executives:
- Chief Executive Officers (CEOs), especially of larger companies
- Other C-level executives, like CFOs, CTOs, COOs, etc.
- Property & Real Estate:
- High-performing estate agents dealing with luxury properties
- Property developers
- Senior airline pilots (especially those flying long-haul routes for major airlines)
- Marketing & Sales:
- Sales directors (especially in industries with high-value products/services)
- Senior marketing directors
This is by no means an exhaustive list. There are many other fields where you can earn £70k or more. One option is to start your own business to reach the £70k income mark. It may be a more unpredictable path with more ups and downs but it also has more upside if executed correctly.
Earning £70k per year is an amazing salary in the UK, especially if you live outside of London. Earning this salary pre-tax puts you in the top 7% of earners in the country. That’s pretty damn good. However, if you want to move into the top 1% of earners you have a long way to go. The top 1% are pulling in over £183k per year. That’s a big jump from £70k.
Read More From Money Sprout: