Was £65k a huge salary 5-6 years ago?

[Donotfitin]

I‘m just curious as back then we thought it was life changing money. I’m currently on that salary and to us it’s now “mid” (in fact, I’m starting a new job with a higher salary which is a really nice upgrade, but still not life changing).

So I wonder if it was us being naive back then, life getting expensive, or something else.

That’s interesting I live in the SW, but have a “London” salary for the most part. It was interesting to see, that my new salary (with bonus) takes me just below the top 10% for London.

My pension is £6k a year as I’m not elegible for the state pension yet. Luckily DH does get his state pension so we can survive.

£65k a year is like winning the pools to me. 🤷🏻‍♀️

I can't find it right but, but I have seen another data set showing average salary by age and region, which is really eye opening if you're in your 50s in London, especially for all those posters who insist £xxxx is a huge salary, without taking region into account.

Of course. It’s still good today. Not achievable for majority of this country

Exactly! But I also know I’m doing a job that can’t be found that easily in the SW (it’s mostly London based) so the “regionality” is a moot point.

My SIL is on £80k. She was on less before this job.

Completely agree that nothing goes anywhere near as far as it used to.

That said, our entire household income is less than 60k and we manage. Very old cars and no holidays ever, even UK ones, but I don't consider us to be poor. Had I not met dh when I did (and added a second low salary to the household) I would definitely have been unable to stay in my 3 bed semi cottage.

It's all relative, sure. But I would be ecstatic to earn anywhere near that, and never have.

It wasn't huge but as others have said, it was worth way more in 2020 than it is now. I'm on about £60k which at one point would have been a ridiculous dream salary for me, but mainly just results in me putting more money into my pension because the tax thresholds are frozen seemingly forever.

5-6 years ago that'd been a very good salary. It's still decent now. Fiscal drag will make it almost worthless soon, though.

It probably was to you then but with lifestyle creep and an increasing cost of living you likely don't feel much better off?
I remember when I thought 40k would be a huge salary and when I got there I still felt like it was shit. I know it's higher than a lot of people but somehow it never feels like enough.

After tax it’s £48k a year or £4000 per month. Rent of a crappy 3 bed semi-detached in my area of London is £2,845 a month. That leaves just £1,250 a month for bill, transport, insurance, food and anything else.

It’s a decent salary but it’s not a lot for everyone to live off - eg a single parent in my area.

In my head it's a really decent salary. I'd be chuffed to earn that amount.

I remember our household income being around 25k and thinking if we ever got to 60/65k we'd definitely be able to afford abroad holidays, hobbies and luxuries. Here we are with one household income around 45k after tax and its comfortable we aren't in debt but it's second hand stuff it's no abroad holidays barely a UK holiday, it's an old car. No hobbies, a treat is netflix . It's bonkers to me that our lifestyle hasn't really changed much since then. It always feels out of reach no matter what we earn. Even have to partially pay back child benefit yet a dual income family could earn far more than us and not have to pay back any.
We are at the point where if my partner got a pay rise or bonus unless if it was a significant jump up we'd be worse off due to the tax. It makes no sense.

If things continue to go up and up I don't know what we will do because there is not extra we can trim off our spending we are pretty basic and frugal. We have considered relocating to a cheaper area as we are commuter area to London.

not taking into account paying into a pension scheme @GoldenCupsatHarvestTime and in Scotland it's less than £3900 a month because tax is higher.
Also not factoring in that many people with these sort of salaries will be graduates who might still be paying back student loans so that's another deduction....
Given current rents and house prices in areas where you're likely to find jobs paying such salaries it's really not a huge amount to live on if you have a family. I don't actually know how people do it!

To have the same purchasing power as £65k in 2020 you'd need around £82k now, so it would have been a decent salary for most people.

I think it’s pretty good money now. I’m highly educated (PhD) in a professional role and I’ve never made £65k! I’d love that sort of money. We have a very good lifestyle and quality of life though, £800k house, hobbies, I have a horse, no debt other than our mortgage. So it’s very possible to live a great life on less than that assuming you aren’t blowing it all on something silly.

you say "we" and "our" though @mindutopia how much is your other half bringing in as well?

The gap has closed due to inflation on goods and the huge rise in NMW in a short period of time.

It’s not much over 2x the minimum wage take home, and that’s not to mention those on a 65k salary will likely have a large student loan payment coming out.

Only London opinions welcome then? It may shock you, but most people in the UK don’t live in London.

How did you afford an £800k house if your salary has always been lower than £65k?

No. It was a good salary but not huge at all. All relative though! For my kids today it would be amazing, but they couldn’t buy a place on their own with that. Or even as a couple both earning that, might stretch to a one bedroom, maybe two quite a bit further out.

With an 800k home and a salary lower than 65k you’re either relying on a spouse bankrolling a more lavish lifestyle or buying 20 years ago and experiencing the type of house price growth that simply doesn’t exist now.
A couple earning that now couldn’t afford the lifestyle you’re describing so it’s hardly a good example of it being “possible to live a good lifestyle” on that salary.

It’s a high salary if you compare it to the national average wage. I earn around average wage so 65k would be pretty huge to me!

So imagine the lower purchasing power of those on half that.

It absolutely doesnt go as far, before I say "my husband" which is so annoying, i know, im caveating this to say I earn 65k.but only for last 2/3 years
Dh earns around 60-65k but bas been at that point for maybe 7 years. At one point we had a life of riley, zero debts always out. Holidays etc. You would think as I increased my earnings to match it would be great- nope. Interest on mortgage, cost of everything going up- water electric tax etc were no better off in many ways, we hardly go out now and holidays are very much "considered" before we book. Yeah its better than alot of people, our bills are paid we never worry about food on table or school trips etc but earning 120/130k as a household isnt the same as it was 5+ years ago

It's a good salary. It's not insane.