UK vs US salaries

[Star555]

Perhaps a naive question, but why are US salaries so significantly higher (often 2x) than UK salaries for the same jobs, e.g. in science and technology? I know that UK gets NHS and more holiday time and maternity leave than the US, but can that really make such a big salary difference? I also know that private (fee-paying) uni education is insanely expensive in US (state unis are much cheaper), but in UK the cost of fee-paying schools for children up to Year 13 isn't exactly cheap either!

For those of you who moved to/from the US by choice, was the increase/decrease in salary among your main incentives/concerns? Or did salary not play a big role for you? (Perhaps other factors like being near family were more important.)

Most companies have someone knowledgeable who can talk you through how your benefits would work. It's definitely worth asking.

As well as health insurance (including dental and vision) you should also be offered short and long term disability - these pay your sick pay.

And find out the pension deal - most companies offer a 401k and they should match at least some of your contributions.

You'll also probably be offered a baffling range of other insurance - life, AD&D, cancer, hospital, child life... too.

Just joining to read and learn. My DH has had initial conversations with his work about a move over with them. His work would be in NYC.
I am not keen tbh. We have three primary school age children and a very nice life where we are. I have a job that I enjoy. I foresee him working incredibly hard and no quality family time at all if we make a move.
Those of you who did move over, how do you manage the emotional side of it with your children? What did they find the biggest challenge?

@ZZTopGuitarSolo what did you use to do your own taxes? First year I’m attempting without an accountant and trying to decide between TurboTax and HR Block unless you have other suggestions?

Research health insurance costs op - eyewateringly expensive for half decent cover. Also zero paid maternity leave, parental leave and a very presenteeism working culture (rare that folk take their whole limited leave entitlement in many corporate roles)
The sort of company that pays no maternity leave or health insurance and offers lousy paid time off is generally not the kind of company making relocation offers to employees from the UK.

The health is the one thing I’m not worried about - although I agree that others should be as the American health system does seem to be a complete minefield.

@Rhayader, I would advise you to get a hold of the exact policy you are being offered and explore its every detail. You may be able to find someone in HR to walk you through it, and then to be available to you for follow up questions.

It may seem dense and scarily complex, but once you find your feet you will get used to the admin side of healthcare that Britons are spared.

I also think it's hard to compare cost of living. We have 3 cars insured for anyone to drive, including 4 teens, and that costs about $1500 a year

We have 3 cars and just on the one that dd in her 20s drives is £2400 per year. Even the other ones that Dh and I drive cost around £800 per year.
$1500 is amazing

OTOH our heating costs at least $200 a month even with us cutting our own wood for the stove

My gas and electric bill is similar to more expensive

Internet is $90 a month for a 400mbps connection which also seems a lot

This is the only cost that is cheaper but we still pay £45 per month for faster broadband because we live in a semi rural area

Food we find cheaper in the US. We are vegan/vegetarian and fruit and veg is so much cheaper

@Rhayader

DH’s employer has asked him about a move to Connecticut (Greenwich) where they are opening a new office and he’s said he’s interested but they haven’t mentioned money at all yet. It would feel cheeky to ask for such a high number (double in dollars) but then we don’t want to be screwed over. Especially when his visa is tied to his employment so he can’t exactly just move jobs...

Health insurance is paid for 100% though so that’s one less thing to worry about. I did a quick comparison and average wages are 30% higher in CT than in London so that was a least one bit of data to use in the negotiation 😬

Housing is more expensive but you get a lot more for your buck if that makes sense.,. The average house just seems enormous. Good public schools too.

My DH grew up in Greenwich, CT and his mum lives there. It's a lovely town but housing is stupidly expensive. There are less expensive towns nearby he could commute from.

The schools are excellent.

[quote KobaniDaughters]@ZZTopGuitarSolo what did you use to do your own taxes? First year I’m attempting without an accountant and trying to decide between TurboTax and HR Block unless you have other suggestions?[/quote]
I've only used TurboTax, and it did seem to work - even with a small business. I also paid them for that service they offer where an accountant will represent you if you get audited, plus the fee to file state and federal, by which point I was starting to wonder if an accountant would be much more expensive...

We used an accountant a couple of years when we had complex tax situations relating to UK based income and property. Otherwise we've used TurboTax and it's quite simple.

We didn't have kids old enough to really know much of a difference so can't help with that I'm afraid. As well, we had family here (my mother is American and moved back to the USA) so it was different in that way too.

I think the US can get a bum rap on MN but I always think women should consider it carefully before following their spouse overseas. It puts them at a possibly-permanent disadvantage financially, and the power the company holds over the employee makes things tricky even without country specific work culture issues. The job has to be worth it. I also think that all the costs of relocating plus losing your support network mean your salary really needs to be higher than what you'd want if you had already been living there. That dislocation winds up having concrete financial costs.

@ZZTopGuitarSolo

Thanks, I’ve heard others asking for an accountant to do the first year (uk and USA taxes) so I think that’s probably something to ask for. We do our own here but it’s pretty simple, I have nothing to pay and DH has to pay for his P11D.

The company puts 10% (of your base and your bonus) into a pension in the U.K. on top of your salary and they do the same in the US.

The only differences are that in the US you can invest it directly with the company’s fund (they are an investment company of sorts) and in the U.K. there are tax reasons why they can’t always put in 10% so you can take the bit that would get “double taxed” as salary instead.

The fund typically outperforms the kind of thing you can get in the market and it’s fee free so most people in the US invest directly in the fund.

@mathanxiety

I will definitely ask HR about this and read through all the forms as I am a researcher by nature (and profession) but literally everyone has said “it’s the best of the best” and I’ve only asked/been told by junior employees. But your right, there are definitely going to be different opinions of “best of the best” on each side of the Atlantic when it comes to healthcare! I know someone in the US office who has had IVF paid for on the company plan which they said was not normally offered at other companies. I have 3 dc so I’m not interested in that specifically but it sounded like a good indicator.

@MissConductUS
Thanks, I am feeling a bit weird about considering a move somewhere that we have not been yet! On paper it looks lovely 😊 we currently live in London but are originally from the countryside and we are looking for somewhere with more space.

@Rhayader do you mind me asking if you currently work or plan to work when over there and what age your DC are?
I have three as well, I work three days a week in a job which I could go full-time in tomorrow if I requested it. I love what I do and who I work for. It's a transferable skill but I have a unique enough set up in that I wfh for a company that has always been remote and is run by a lady who I worked with before and have immense respect for.
I do not want to go back to proving myself again...

We aren't as far down the road as you and your DH but I'm trying to work out how I feel about a move; whether we have would all go at the same time or let my DH go ahead for a year to work out if the opportunity is big enough for us all to ship over.

My worry is it's such a good move for him but I don't see the upsides for me. The children I don't know - one I suspect would fly in terms of embracing the culture, the other two are quite hesitant in their approach to things.

And i worry about my family here. I haven't told them about this at all yet as well we can't even meet together right now. My parents are getting older and I suspect the pandemic has cut short their once huge enthusiasm for travelling.

The tips I have had from people who moved is to ask for work to provide back up for anything where credit history is required. Rent /Phones / cars etc.
Plus an accountant for a year in both UK and US to sort out things during the moving time and tax years.

@StepawayfromtheBiscuittin

I’m planning on taking a little bit of time off work to be honest. The DC are little right now (eldest is 7, youngest is

Thanks @Rhayader I think I would have to take some time out too. My DH would be commuting to NYC and then it's a case of where is best for us to live.
Mine are 9, 7 and 4. I think my 9 year old will love it - she's a plucky girl and never turns down an opportunity. The other two are much more reserved (like me )

@StepawayfromtheBiscuittin

Mine are 7 4 and

@Rhayader, A few things may help you understand Greenwich. It's the closest town in Connecticut to NYC and has always been a major commuter town. For decades NY had a state income tax and CT did not, so lots of highly paid people who worked in NYC moved to Greenwich. CT now has an income tax, but it's lower than NY's. The effect of this has been to make it a very wealthy town as so many work in finance, law, banking, etc.

There are parts of town where the houses are spread apart on larger lots (known as "backcountry") and other areas that are older with smaller houses on more normal-sized lots. Riverside, Cos Cob (an Indian name), and Old Greenwich come to mind. My DH grew up in Old Greenwich and it's very highly sought after. Google "Tod's Point Old Greenwich" to see the beaches there. DH and I live in an adjacent area of New York, about a 40-minute drive from Greenwich so we go there often.

I am really familiar with the American health insurance system, such as it is. Ask for the plan's summary description. Feel free to PM me if you have any questions about Greenwich or the medical coverage they are offering you. Do you know which insurance company it is?

I will just warn you that US degree costs are large, I did one college class and it was 2000$. Just one class!
That was the standard cost for that type of part time student not an inflated overseas student cost.
I considered a PhD then realized I could buy a holiday cottage for the same price.

@MissConductUS

Ive just asked and it’s Aetna but they have secondary insurance which covers anything that isn’t covered by the normal insurance. Nobody seems to pay anything directly towards anything but I’m not sure if it could come out of their pre tax salary and they don’t know?

There’s no co-pay for when you do something but if, for example, you bought something in a pharmacy and it wasn’t covered then you submit the receipt to the secondary and you are reimbursed.

First, Aetna is an excellent insurer. I've had coverage with them myself, and they are based in CT. You have good choices for in-network providers in the area.

The secondary coverage you're talking about is very likely a flexible spending account:

www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/

You pay into the account pretax then it can be used to pay for almost anything medically related. I use mine to cover co-pays and dental work that's not covered by my dental insurance.

Greenwich Hospital is very good and there's an abundance of good doctors and medical groups in the area. You'll also have access to the world class hospitals in NYC if needed.

@lunarlife

I will just warn you that US degree costs are large, I did one college class and it was 2000$. Just one class! That was the standard cost for that type of part time student not an inflated overseas student cost. I considered a PhD then realized I could buy a holiday cottage for the same price.

As mentioned above--costs are hugely variable. It pays to do your research.

Also for PhDs, many students are funded through teaching assistantships which provide a tuition waiver as well as stipend. (Some PhDs are not worth doing at all if they are not funded.)

Westchester County is also an option if you're working in CT though property taxes can be extremely high there.

Ahhh that’s fab news, thanks @MissConductUS

@StepawayfromtheBiscuittin afraid mine were newborn and toddler when we moved but am facing the same question for a move back to the U.K. now they’re older

Is your DH also transferring within his company on an L1? If not and he’s on a H1B you won’t be able to work

The tips I have had from people who moved is to ask for work to provide back up for anything where credit history is required. Rent /Phones / cars etc.

This is really good advice. When we moved we had DH's company CEO act as a reference for us with people like the bank when we were opening an account. Small company and we knew the CEO personally which helped...

@Rhayader, you're quite welcome, I'm pleased I could help.

Just to clear up something, you could have out-of-pocket medical expenses even with the flexible spending account funded with pretax money. The cap on the annual contribution to those is around $2700 per year I think. Your medical coverage from Aetna will have co-pays and deductibles, with a maximum out of pocket limit for the year. See

www.healthcare.gov/glossary/out-of-pocket-maximum-limit/

Aetna's annual maximum will vary by plan and will almost certainly be lower than the limits in that article. If you have a lot of medical expenses you may wind up paying directly for whatever falls between the FSA amount and your annual maximum with Aetna.

Like all insurers, Aetna offers many plans and one way they'll differ is the number of providers who are considered in-network and will therefore get the greatest fee coverage. If you can, ask someone in the plan if they think the in-network coverage is good. With Aetna, especially in CT, my expectation is that it would be very good, but it never hurts to ask.

@Rhayader DH is keen on Greenwich or Westchester. He works in finance / investment area too and is more familiar with NY / CT than I am.
I had a brief look at properties online and then stopped as I was only tying myself in knots with the different options. He's awaiting more details on the proposal and how it will work and then we will do a compare with what we have now.
@KobaniDaughters that's helpful on the visa. Whilst I might not want to work immediately I would want to have the option - financial independence is important to me.
Question for everyone. Did you all move because your DH had a career opportunity? I feel for the first time that we are facing a decision over which I have little insight to. It's horribly unnerving for me. I can't work out if that's because I don't want to go or if it's normal to feel so unsure.