In the UK £50k can go a long way. There is no doubt it’s a reasonably good salary. However, you may be wondering what percentile of earners £50k puts you in. How good are you doing in terms of income, compared to the rest of the country?
In this article, we’re going to show you where you stack up against your counterparts when earning a £50k salary. By using the most recent data from the government we can find out exactly how well you are doing. Let’s jump in.
What Percentage Of Individuals In The UK Earn £50k Or More?
In the UK the data shows that earning over £50k puts you in the top 15% of earners in the country. This is the equivalent of the 85th percentile. If you are earning £50k or more per year you are earning more than 85% of the working population.
This chart was created from the latest government data on percentile points of the income distribution.
What Is £50k After Tax
Congratulations on securing a job with a £50k annual salary! Remember, not all of this is yours to keep; taxes and National Insurance will be deducted first.
Here’s a breakdown:
- On a £50k salary, you fall into the 20% Tax Bracket.
- You get an untaxed allowance of £12,570, so you’ll be taxed on just £37,430.
- Your Income Tax comes to £7,486, and National Insurance is £5,316.
After deductions, your net salary is £37,198 per year or approximately £3,100 per month.
What Percentage Of Households Earn Over £50k?
Earning £50k as an individual puts you in the top 15% of earners but where does £50k of household income put you and your family?
According to ONS data from the financial year ending 2020 (the latest available data), 34% of households earn more than £50k per year.
When we isolate the data to only London, we can see that 46% of households in London are bringing in more than £50k per year.
Is £50k A Good Income In The UK?
Earning £50,000 annually places you well above the UK’s median average salary of £33,280. You’re taking home nearly £17,000 more than the typical full-time worker, which is commendable.
Yet, if you’re based in London, the perspective shifts a bit. The median salary there is £41,866. While an extra £8,000 above this average is notable, it’s essential to consider the higher cost of living in the capital.
Nonetheless, a £50k yearly salary outside London is undoubtedly impressive. It should provide a comfortable lifestyle for you and your family, especially with another income in the household. After covering your expenses, there should be funds left for both savings or investments and leisure activities.
How Can You Earn £50k Per Year?
If your goal is to earn £50k per year, you have a wide range of career options to choose from. If you are aiming for £100k per year or more there is only a few fields you can really go into. However, at the £50k level, you can likely find a job you are passionate about while earning a comfortable salary. Here are a few of the careers you can go into that have the potential to pay £50k or more.
- Medical Professionals: Doctors, particularly specialists, can earn significantly more than £50k. Dentists and pharmacists often fall into this category as well.
- Legal Professionals: Solicitors, barristers, and judges, especially those with several years of experience or those working in commercial sectors, can earn substantial salaries.
- IT Professionals: IT managers, IT consultants, software engineers, and cybersecurity experts can often earn £50k or more, depending on their expertise and experience.
- Engineering: Senior engineers, particularly in fields like chemical, petroleum, electrical, and civil engineering, can command high salaries.
- Finance and Banking: Investment bankers, finance directors, chartered accountants, and financial managers in large corporations or firms can earn salaries that significantly exceed the £50k mark.
- Aviation: Experienced airline pilots, especially those flying international routes or for major carriers, can earn upwards of £50k.
- Sales and Marketing: Sales directors, marketing managers, and other high-level roles, especially in lucrative sectors, can command such salaries, often with bonuses and commissions on top.
This list is by no means exhaustive. Starting your own business is also a great way to reach the £50k income mark however it can be a more unpredictable path with more ups and downs than a steady career.
Final Thoughts
Earning £50k per year or more is a great position to be in especially if you are early in your career. You are earning more than 85% of the population putting you in the top 15% of earners. Most people can get to this stage if you pick a solid career path and work your way up the ladder.
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