What is a Good Salary in the UK?

Trying to determine what is a good salary in the UK can depend on various factors, such as location, age, experience, and industry.

But, more thane ever, with the cost of living varying greatly in different regions, it's essential to understand how much you need to earn to maintain a comfortable lifestyle wherever you choose to live in the UK.

Fortunately, we have statistics to help us. 

In this insight, we'll delve into the factors that influence a good salary in the UK, discuss the average wages in various sectors and locations, and provide insights into salary trends and negotiation tactics.

Key Takeaways

• Location plays a significant role in determining a good salary in the UK, with higher living costs in places like London compared to other regions.
• Salary tends to increase with age and experience, as individuals progress in their careers and take on more senior roles.
• Different industries offer varying salary ranges, with finance, technology, and medicine often providing higher wages compared to service and retail sectors.
• Higher education levels, such as bachelor's, master's, or PhD degrees, generally correspond to higher salaries in the UK job market.

What Is A Good Salary In The UK?

A good salary in the UK varies based on factors like location, age, experience, and industry. Generally, it should cover living expenses comfortably and enable some savings. In London, for instance, a good salary might be at least £45,000 annually to maintain a comfortable lifestyle. However, it ultimately depends on individual circumstances and financial goals. Currently, 4% of the UK earns over 100k a year. 

Let's elaborate...

What Is Considered A Good Salary in the UK?

Location

Where you live in the UK greatly influences the cost of living and, subsequently, what's considered a good salary. For example, living in London is significantly more expensive than living in other cities or rural areas, with higher housing costs, transportation expenses, and overall living expenses.

Age and Experience

As you progress in your career and gain experience in your field, your salary typically increases. Entry-level positions often have lower salaries, while more senior roles and management positions command higher pay.

Industry

Different industries have varying salary ranges, with sectors like finance, technology, and medicine often offering higher wages. In contrast, service and retail industries tend to have lower average salaries.

Education

Higher education levels often correlate with higher salaries in the UK job market. Graduates with bachelor's degrees, master's degrees, or PhDs generally earn more than individuals with only high school qualifications.

Average Salaries in the UK

As of February 2024, the current average salary in the UK is £34,632, which is a 6.6% increase from 2023. This data comes from the Office for National Statistics (ONS), which provides median salary information for various age groups, industries, and regions.

Average Salaries by Age

• 18-21 years old: £12,451
• 22-29 years old: £23,166
• 30-39 years old: £25,039
• 40-49 years old: £31,476
• 50-59 years old: £22,913
• 60+ years old: £16,611

Average Salaries by Industry

The average salary in various industries can vary greatly, with some sectors offering much higher wages than others. Here are some examples of average salaries in different industries in the UK:

• Finance and Insurance: £43,821
• Energy: £42,500
• Mining: £42,400
• Accommodation and Food Services: £22,779

Average Salaries by Location

The average salary in the UK differs depending on the region. According to the ONS, London has the highest average salary at £39,700 per year, followed by the South East (£33,000) and Scotland (£32,000). Other regions, such as the North East and Northern Ireland, have lower average salaries, around £27,000 to £28,000 per year.

What's a Good Salary in London?

Due to the high cost of living in London, a good salary in the capital is generally higher than in other regions. To maintain a comfortable lifestyle, you would need an annual salary of at least £45,000 in London. However, the average salary in London is £39,700, which is lower than the ideal amount for a comfortable life.

Good Salary in London Breakdown

• Single person: £50,000 per year
• Couple: £60,000 per year
• Family of four: £70,000 per year

We break down the costs explaining how we arrived at these figures.

What Is The Cost of Living in London?

Living in London is expensive, with high housing costs, transportation expenses, and other essential living costs. Here's a breakdown of some common living expenses in London:

• Rent: £1,500 for a one-bedroom flat in the city
• Utilities: £350 per month (including water, gas, electricity, and council tax)
• Transportation: £130 per month for an Oyster card
• Groceries: £350 per month
• Socialising and entertainment: £400-£500 per month
• Childcare: £160 to £330 per week for a childminder and £10,000 to £23,000 per year for private school tuition

Jobs with the Highest Salaries in the UK

Some of the highest-paying jobs in the UK include:

• Marketing, sales, and advertising directors: £74,224 per year
• Chief executives: £72,621 per year
• IT directors: £68,912 per year

UK Salary Changes Over Time

In recent years, the average salary in the UK has generally increased. In 2024, the average full-time earning increased by 6.6%, a moderate, stable change increase compared to recent years. 

Salary Assessments

Financial Planning

It's important to keep on top of your finance and plan for your future, regardless of what your salary is. If you're in need of financial advice, complete the Sunny Fact Find, the answers you provide help us find the best-suited adviser for your needs. Your adviser then contacts you to discuss how they can help, you decide how to proceed.

Determining what is a good salary in the UK depends on various factors, including location, age, experience, and industry.

Understanding the average salaries in different regions and sectors can help you make informed decisions about your career and negotiate a fair wage. Keep in mind that a good salary should not only cover your living expenses but also allow for some savings and a comfortable lifestyle.