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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Is this classed as a ‘high earner’?

512 replies

Earnerlesr · 17/07/2023 22:34

65k.

And if it’s not, what figure starts to be classed as a high earner?

OP posts:
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15
wyrm0 · 18/07/2023 14:55

Indigotree · 18/07/2023 14:53

That's skewed by a few ultra, ultra high earners, though.

SORRY! Average salary in the SE is 40.5k

Indigotree · 18/07/2023 15:03

GeekyThings · 18/07/2023 12:56

It's still a misinterpretation of the statistics. It's the median of the top 20% of people; that means there are as many under that as there are over that, but who are still classed as higher earners. That's just the average within that top range.

It's also different to individual salaries, which I think is what people mean when they say 'high earner' - household income is the total across everyone within that household, whether they're earning anything or not.

And it's after tax, so a lot higher than £65k.

Indigotree · 18/07/2023 15:05

spir1t · 18/07/2023 11:12

RegainingTheWill2023 - London is very diverse. No, cleaners and nursery workers etc are not living in say, Chelsea (unless in social housing, which is very limited). They will be travelling from other areas, often quite some distance.

Chelsea has about 20- 25% social housing, which seems low for London. Another 36% private rentals.

https://www.rbkc.gov.uk/housing/help-housing-homelessness-and-finding-new-home/applying-councils-housing-register/social-housing-borough

Social Housing in the Borough | Royal Borough of Kensington and Chelsea

An overview of housing in Kensington and Chelsea and who can join the Council's housing register.||Information about local housing support, social and accessible housing.

https://www.rbkc.gov.uk/housing/help-housing-homelessness-and-finding-new-home/applying-councils-housing-register/social-housing-borough

User6424678852 · 18/07/2023 15:12

twistyizzy · 18/07/2023 08:00

Not in the North where I live you wouldn't. Again, mumsnet thinking skewed towards the South!

I live in the Borders

User6424678852 · 18/07/2023 15:14

lost half the post 🙄

I live in the Borders, so yes skewed to the South, but not of England.

Fizbosshoes · 18/07/2023 15:35

Pandor · 18/07/2023 14:30

The comment about the invisibility of the majority to high earners is spot on.

All those people emptying bins, delivering mail, serving them at the corner shop, looking after their kids at nursery, cleaning their house, and doing all the countless other jobs that just seem to happen around them are discounted as they ponder their high earning friends, and the colleagues sitting above them on the ladder at work and then conclude that really earning £120k plus is pretty ordinary around their neck of the woods!

Yup all these and more (transport, retail, hospitality, manufacturing to name a few more that obviously don't exist in London or Surrey! 😉)

Even if you include "professionals" most teachers, university lecturers, early years teachers won't be earning this. Not all solicitors or accountants earn 100k. The average salary for GPS at surgeries in my town is 50-70k so they're not on all 100k either. (Nurses will be on less)

dcsp · 18/07/2023 15:48

Earnerlesr · 17/07/2023 22:38

I suppose I’m trying to work out what the phrase means as it’s used a lot on here, on the news, in conversation etc

I've often said jokingly, but entirely seriously, that the phrase "high earner" means someone earning at least twice what the person saying it earns.

About 60% of the country earn £32.5k or less, so would consider £65k a high earner by that logic.

Beetleback · 18/07/2023 15:53

Zampa · 18/07/2023 13:48

This is very interesting and really explains the very different viewpoints on this thread.

I'm very conscious of this in my own experience as well.

Our household income puts us in about the top 5% of earners. Our social circle ranges from people with no income other than UC through to CEOs on dizzying salaries.

I feel like we are in a starkly different income demographic from the people on UC and the CEOs (though as that article points out, in absolute terms our household income is much closer to the UC claimants than that the 7-figure CEOs) - we are clearly much better off than than the UC claimants and much worse off than the CEOs and that's very visible in our lifestyles.

But I don't feel THAT different from the majority of people I know who (I would guess, based on their jobs) range from around median incomes through to incomes similar to our own.

Yes, compared with those closer to the median we may have a newer car, can easily afford a foreign holiday or two each year, shop at Waitrose not Tesco, have less outstanding on the mortgage, etc etc. And we have the (admittedly huge) luxury of not worrying about finances day-to-day. But our lifestyles aren't vastly different, we're not existing on another plain.

Perhaps I underestimate how much more wealthy we seem to our median-income friends - to me these things (Tesco vs Waitrose, etc) feel fairly insignificant, but perhaps it's more palpable to them? I think people naturally compare themselves with people who have more?

It's something I'm conscious of occasionally (like I'll let people suggest the venue for a meet up if I know they're likely to be in a lower income than me) but not to the extent that I feel like we're "high earners", despite the fact that I know that on paper we are.

Beetleback · 18/07/2023 16:01

Also worth adding that another huge consideration (especially in an area like London with massive housing costs) is not just income but wealth

A lot of time people on incomes lower than ours who live in our area can only afford to because:

  • they had a large inheritance
  • they have accumulated equity on previously owned property(s) - particularly where a couple had managed to both buy a property before they moved in together and combined the equity.

We didn't have either of these things so although we've got higher earnings this is somewhat offset by the fact we have less wealth.

Cablescablescables · 18/07/2023 16:06

fuchiaknickers · 17/07/2023 22:42

Goodness me, yes I would say so!

How many jobs even pay £100,000+ outside of London?! I bet there are no more than about 50 people in my whole county earning that much.

Some people live in a bubble.

You're right, in Scotland we don't even earn money, we just trade goats and wheat.

🙄🙄🙄

GlitteryUnicornSparkles · 18/07/2023 16:08

Personally I consider anyone on £40k or more a high earner, if I were on 40k I’d consider myself rich! But I generally assume when people say high earner they are talking £50,000 + Though it seems many on here wouldn’t consider that high!!

Ohmygiddyauntie · 18/07/2023 16:33

100k plus.
The tax negates those high incomes though.
I wouldn't say 65k is a lot, after tax, it's around £1000 a week.

Rambl · 18/07/2023 16:35

It's all relative though, depending on where in the country you are. DPs salary of £165k would seem eye watering to our relatives who live near Preston. We've looked at the type of properties we could buy there (6 bedroom, detached, 4000sq ft, massive gardens, electric gated). In the home county we live in, commuter distance to London, we live in a modest 4 bedroom semi-detached.

Perception from the general public would be we are super well off, must have brand new cars, a huge house, private schooling etc. But that's not the reality if you live in London or one of the home counties. That's not to say we don't have a nice, comfortable life (we do) but we're certainly not rolling in it!

PuttingDownRoots · 18/07/2023 16:40

Found a Take calculator online...

£30k = £470 a week
£40k = 600 a week
£50k = £731 a week
£60k = £843 a week
£70k = £954 a week
£80k = £1066 a week
£100k = £1290 a week

WarmButteryCrumpets · 18/07/2023 16:55

Toottooot · 17/07/2023 22:35

Not in the slightest - at least 6 figures.

Really? That's very low. I'd say anything less than a million is distinctly average 😝

Ohmygiddyauntie · 18/07/2023 16:55

65k pays £18500 in taxable deductions.
30k pays £5500 in taxable deductions.

StormShadow · 18/07/2023 17:18

Beetleback · 18/07/2023 16:01

Also worth adding that another huge consideration (especially in an area like London with massive housing costs) is not just income but wealth

A lot of time people on incomes lower than ours who live in our area can only afford to because:

  • they had a large inheritance
  • they have accumulated equity on previously owned property(s) - particularly where a couple had managed to both buy a property before they moved in together and combined the equity.

We didn't have either of these things so although we've got higher earnings this is somewhat offset by the fact we have less wealth.

This makes a huge difference.

The vast disparity in housing costs over time, and also by region, is the reason why this topic comes up so much. Because people understand that income is only one of the relevant financial factors. If you've got half the money coming in that next door do but they bought 20 years ago and you privately rent, actually they probably are better off than you.

MrsKeats · 18/07/2023 17:39

I would say 100k plus in the north.

loonyloo · 18/07/2023 18:05

As a few other people have pointed out, 65k puts people into the top 10%. So yes, 65k does make someone a high earner. I don't understand people who refuse to believe they are classed as high earners. Just because your expenses have risen in line with your income doesn't mean you're a low earner.

This calculator lets you see where you are in terms of income percentage, adjusted for dependents and council tax https://ifs.org.uk/tools_and_resources/where_do_you_fit_in

Your household's income : Where do you fit in? | Institute for Fiscal Studies

When you think about your income, do you feel rich, poor, or just plain average? Find out where you lie in the UK income distribution.

https://ifs.org.uk/tools_and_resources/where_do_you_fit_in

VeterinaryCareAssistant · 18/07/2023 18:10

Yes, it is high.

But you already know this.

Anything above the average is high.

backtogrey · 18/07/2023 19:00

WhileMyGuitarGentlyWeeps · 18/07/2023 10:56

@backtogrey

Bit measly... I have at LEAST 10 friends on 8 and 9 figure salaries. One man bought his wife a jetranger helicopter for her 35th birthday last week. She was a bit miffed as he spent much more last year. Bought her an 8 seater private plane. Still, I think she should be grateful. DH only bought me a 30ft long yacht for my birthday in the Spring. Sad

https://www.fnlondon.com/articles/kpmg-uk-partner-pay-jumps-10-to-757000-20230131#:~:text=KPMG%20UK's%20average%20partner%20pay,firm%20said%20on%2031%20January.

I have a few friends working for the big 4 at senior levels. A significant number of my school friends moved in to the corporate world in London and earn huge salaries but it comes at a cost of very long hours and lots of stress. I chose to earn less but have a better quailty of life.

KPMG UK partner pay jumps 10% to £757,000

Big Four firm says it is committed to its multidisciplinary model

https://www.fnlondon.com/articles/kpmg-uk-partner-pay-jumps-10-to-757000-20230131#:~:text=KPMG%20UK's%20average%20partner%20pay,firm%20said%20on%2031%20January.

JanesBlond · 18/07/2023 19:01

Anything above the average is high

I don’t think that’s necessarily how most people define it. 5’5 is a higher than average height for a woman but you wouldn’t say it’s tall.

Glamrockgoddess · 18/07/2023 19:06

WhileMyGuitarGentlyWeeps · 18/07/2023 10:56

@backtogrey

Bit measly... I have at LEAST 10 friends on 8 and 9 figure salaries. One man bought his wife a jetranger helicopter for her 35th birthday last week. She was a bit miffed as he spent much more last year. Bought her an 8 seater private plane. Still, I think she should be grateful. DH only bought me a 30ft long yacht for my birthday in the Spring. Sad

Only 30' - what a cheapskate !

You need at least 37' for comfort !

(and yes, I am qualified to sail yachts !)

https://www.sailboat-cruising.com/Colvic-Countess-37.html

The Colvic Countess 37 Sailboat

Sailing characteristics and performance predictions, pics, specifications, dimensions and those all-important design ratios for the Colvic Countess 37 sailboat

https://www.sailboat-cruising.com/Colvic-Countess-37.html

fuchiaknickers · 18/07/2023 19:22

WhileMyGuitarGentlyWeeps · 18/07/2023 10:45

@fuchiaknickers

Grin

Do you have really tall and vastly intelligent children too? And do you all eat massive salads? Smile

Naturally! My daughter’s legs are up to her armpits and my son is taller than my DH already and he’s only 4.
How big are your salads? Because mine will be massiver than yours (but I will also be thinner than you).