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Here's how much you need to earn to be rich

by
6th Jun 17 9:58 am

New figures revealed

Theย Employment Election 2017ย study, by the worldโ€™s largest job site, Indeed, has found that nearly half of UK workers think a salary of ยฃ80,000 means you are rich.

The Labour manifesto has proposed a new 45 per cent ย tax rate on those earning over ยฃ80,000 and a 50 per cent rate for those earning over ยฃ123,000. The ยฃ80,000 threshold is more than three times the UKโ€™s average wage of ยฃ28,000.

The mean average of all those surveyed, suggests that on average the UK believes that youโ€™re rich if you earn ยฃ134,170 per year.

Six in ten of young people aged 25-34 believe those with a salary of up to ยฃ80,000 are rich. The figure for those aged 65+ is barely half that highlighting the different expectations between millennials on lower salaries at the start of their career, and baby boomers who have likely experienced their peak salary already.

The regional variation is no less stark. On average, residents of Wales believe a salary of ยฃ91,681 means you are rich. In the South East, the average is ยฃ162,844, 78 per cent ย higher than in Wales. The region with the largest gap between perception of what is rich, and local wage levels is Yorkshire and Humberside, which says ยฃ136,081 is needed to be rich, but has a 90th percentile wage nearly one third this amount at ยฃ47,584.

1 South East ยฃ162,844
2 London ยฃ149,180
3 Eastern England ยฃ141,807
4 Yorkshire & Humberside ยฃ136,081
5 West Midlands ยฃ134,747
6 North West ยฃ130,504
7 North East ยฃ127,773
8 Scotland ยฃ123,241
9 East Midlands ยฃ120,192
10 South West ยฃ112,023
11 Wales ยฃ91,681

Mariano Mamertino, EMEA economist at global job site Indeed, comments: โ€œThe labour market is creating jobs at a steady rate and unemployment is at its lowest level for more than four decades. But wages have stagnated and British output per worker continues to languish below international trends and far behind that of many other European countries. The gap between earning the UK average wage of ยฃ28k and earning ยฃ80k will feel hard to bridge for many.

โ€œJobs are a perennial election issue – but this time the battle lines are being drawn not around those who are out of work, but those who are in work and seeing their living standards begin to slide.

โ€œThe research also shows major differences in salary expectations between baby boomers and millennials, which reflect their ย respective position at very different stages of the working career. As the nation goes to the polls, turnout amongst young voters is set to be a key determinant of the result.โ€

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