Is £70k a good salary in the UK? (2024)

The cost of living in the UK is continuously rising. That’s why it’s important to know whether or not your salary is enough to make ends meet in the UK.

£70,000 is a good salary in the UK. It is also above the median wages of the UK. However, it’s important to consider your location and lifestyle before deciding whether £70k is a good salary or not for you.

In some areas of the UK, £70,000 can go a long way, while in other places it may be enough to just cover basic expenses.

So in this article, we’ll examine the factors that come into play when considering whether £70,000 is a good salary or not in the UK.

Key Takeaways

• A £70,000 salary is well above the median wage in the UK.
• A salary of £70k falls within the top 7% of earners in the UK.
• Age and location are important factors to consider when determining whether a salary of £70k is a good salary.

Is £70k a good salary in the UK?

A £70k salary is a good salary in the UK. It is double the median earnings for full-time employees in the UK. Also, earning £70k per year put you in the top 7% of earners of the UK.

With a £70,000 salary, you have a comfortable lifestyle and you can afford a home, car, and other expenses. You will also have some disposable income that you can save or invest in a better future.

Is £70000 a good salary in London ?

London is one of the most expensive places in the UK. The cost of living is also high in London, compared to other parts of the UK. But, a £70k salary can still provide a comfortable lifestyle in London. Especially if you live alone in the city.

Considering the city’s higher cost of living, a good salary in London ranges from £50,000 to £60,000 per year. That means on a £70k salary, you can enjoy leisure activities, and also save for the future.

What is £70000 after tax?

A salary of £70k per year may seem like a substantial amount, but it is important to understand taxation on that salary. We calculate the net salary based on the assumption that you are not above the state pension age (66), don’t live in Scotland and have no other income and deductions. Like student loan or any other benefits.

A £70k salary person comes under the 40% tax bracket and gets £12,570 a personal allowance. The following table explains your tax deduction on a £70,000 salary.

	Yearly	Monthly	Weekly	Daily
Gross Salary	£70,000	£5,833	£1,346	£269
Taxable Salary	£57,430	£4,786	£1,104	£221
Tax	£15,428	£1,286	£297	£ 59
National Insurance	£4,919	£410	£95	£ 19
Take Home Pay	£49,653	£4,138	£955	£191

Is £70k a good salary compare to every region of the UK?

The location also affects how much your money stretches. In places where the average salary is lower, like in the North East of the UK, where it’s around £31,200, earning £70,000 would feel pretty impressive. However, if you’re in London where the average salary is £44,370, that same £70,000 might not go as far because the cost of living is higher.

So, even though you’re earning the same amount, it can feel different depending on where you live. The following table shows the average salaries in various regions in 2023.

Location	Average Salary
United Kingdom	£34,963
London	£44,370
South East	£36,560
Scotland	£35,518
East	£34,833
South West	£33,450
North West	£33,036
West Midlands	£33,003
Northern Ireland	£32,879
Wales	£32,371
Yorkshire and The Humber	£31,920
East Midlands	£31,634
North East	£31,200

Is £70k a good salary for your age?

When we examine the average median salary across various age groups in the UK, we found a £70k salary above the median for all age brackets. Take, for instance, the age group 40-49, where the highest median average salary is £39,491 annually. This means that, regardless of age, your £70k income stands out as a robust figure. The following table shows the average salaries in various age groups in 2023.

Age Group	Annual Earnings
16-17	£9,969
18-21	£20,437
22-29	£29,120
30-39	£36,405
40-49	£39,491
50-59	£36,834
60+	£32,530

Can you live on a £70k salary in the UK?

Yes, you can live on a £70000 salary in the UK. The average salary in the UK is around £34,963, which is very low compared to £70,000. So it’s safe to say that you can live comfortably on this salary.

However, the ability to live off a salary isn’t solely determined by the amount of money you make. Other factors, such as student loans or any other debts, play a crucial role in this calculation. Everyone’s financial situation is unique. Some may have loans to repay, while others may not have any outstanding debts. So deciding it from my side is not fair.

How do we budget for a £70000 salary person?

Here is a breakdown of some of the monthly expenses you might have on a £70000 salary:

1. Housing expenses: When it comes to expenses, housing is likely to be one of your biggest costs if you live in a major city. If you’re renting, you can expect to pay upwards of £1,500 per month for a one-bedroom flat in London. However, if you live outside of the city, your rent is likely to be lower.
2. Transportation Costs: Transportation costs include vehicle maintenance and public transportation. The amount spent on transportation varies based on your location and travel requirements. The average public transportation cost in London is £200 per month and in other cities is £150 per month.
3. Grocery Expenses: Grocery expenses are essential for day-to-day living. However, the actual grocery cost depends on your personal preferences and diet. In London, the average monthly cost of groceries is £200 and outside is £180. For a couple, the average monthly grocery bill is £240.
4. Utility Bills: Utility bills include electricity bills, water bills, council tax and broadband services. The cost of the utility bill depends on the region and the size of the property. For a single person, the utility bill will be around £125 per month and for a family cost around £180 per month.
5. Other Expenses: With a 70000 salary, you can easily pay other expenses. Like home insurance, service charges, mortgage and rent. You can also go on holiday and buy expensive products.

Can I get a mortgage on a £70,000 salary in the UK?

Having a good salary can work in your favour when purchasing a property. A £70k salary is considered a good income in the UK, and it can open up a range of mortgage possibilities.

But before giving a mortgage, the lenders will check your financial stability and credit score to determine the mortgage amount. In general, you can borrow up to 4.5 times your annual income. So, with a £70,000 salary, you can borrow between £300,000 to £350,000.

However, it’s important to note that this is just a rough estimate. You should always speak to a mortgage advisor to get a more accurate idea of how much you can borrow.

Also, saving for a deposit is another important factor to consider before buying a house. You have to deposit at least 10% of your mortgage before buying a house. A larger deposit means a smaller mortgage loan. Which reduces your monthly mortgage payment.

Once you have a deposit, you can start looking at houses that are within your budget. The cost of housing varies depending on where you live. In London, you can afford a one-bedroom flat while in Wales you can afford a two or three-bedroom house.

However, home ownership involves more expenses than just mortgage payments, which should be considered. Like property taxes, insurance, maintenance costs, and renovations. These extra costs depend on the size and condition of the property. You can check actual house price here.

How much monthly rent can I afford on a £70,000 salary?

It’s important to have a clear understanding of how much you can spend on rent. As a general guideline, you should not spend more than 30% of your annual income on rent. That means you can spend between £1,700-£1,800 per month on rent.

Of course, this is just a guideline. If you have a lot of other financial commitments, such as loans or debt, you may need to spend less on rent.

Also, don’t forget about your monthly bills, transportation expenses, groceries, insurance, and savings. Deducting these expenses from your income helps you determine your rent budget.

The rent amount can be changed depending on your location. With a £70k salary, you can rent a one-bedroom flat in big cities like London. While in the North of England, you can comfortably afford up to a three-bedroom house.

Can I buy a car on a £70000 salary?

Yes, you can definitely buy a car for a £70k salary. Buying a car is an exciting milestone in one’s life. However, it is crucial to consider your other expenses and financial goals. A good rule of thumb is you should not spend more than 35% of your gross annual income. That means you can spend up to £24,500 of our salary.

You can also use the 20/4/10 thumb rule for buying a car. In this rule, you made a down payment of 20% and finance the car for no more than four years. Also, you can’t spend more than 10% of your monthly income on transportation costs. You can check actual car here.

Is it possible to raise a family on a £70000 salary?

Yes, you can raise a family on a £70k salary in the UK. A £70k salary is comfortable earnings for a family of four. It means you can raise two children with a £70k salary even if you are the only one making money.

The average expense of raising a child is approximately £11,000 per year. However, it depends on your location, lifestyle and your child’s age. Childcare expenses are especially high in London. You can expect to pay around £1,000 per month for full-time childcare for a young child. In other cities, childcare prices are low compared to London.

Govt. also helps families to raise their children. The UK Govt. offers free education and healthcare through the National Health Service (NHS). It helps you to reduce the cost of childcare, food, and other expenses.

Achieving Financial Freedom on a £70k Salary

When it comes to achieving financial freedom, a £70k salary can certainly help. However, it’s important to note that financial freedom means different things to different people. For some, it might mean being debt-free, while for others, it might mean having enough money to retire early.

Regardless of what financial freedom means to you, there are several steps you can take to achieve it on a £70k salary. Here are some tips:

1. Create a Budget

The first step towards achieving financial freedom is to create a budget. It helps you to track your monthly income and expenses. And secure you’re not spending more than you earn. A budget can also help you to identify areas where you can cut your expenses and save more money.

2. Pay Off Debt

If you have any debt, such as credit card debt or student loans, it’s important to pay it off as soon as possible. This will not only free up more money in your budget, but it will also help you avoid paying extra interest charges.

3. Build an Emergency Fund

An emergency fund is a savings account that you can use in af unexpected expenses. It could be a car repair or medical bill. Ideally, you should have at least six months’ worth of living expenses saved up in your emergency fund.

4. Invest for the Future

Investing is a great way to build wealth over time. If you’re new to investing, consider speaking with a financial advisor. They can help you to create a diversified portfolio that matches your risk tolerance and financial goals.

5. Live Below Your Means

Living below your means simply means spending less than you earn. This can be achieved by cutting back on unnecessary expenses. With this method, you’ll be able to save more money and achieve financial freedom faster.

Conclusion

A salary of £70k is considered good in the UK, especially compared to the average national salary. With a salary of £70,000, you can easily afford a comfortable lifestyle, including a home, grocery, and other expenses.

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