According to a survey by the BBC, around 38,045 state employees in the UK take home £100,000, or more, each year.
(Going by official figures, that leaves about 545,000 privately employed people earning £100,000 or more a year, after tax, this works out at £65,310. And after average expenses, there should be around £33,310 a year left over.
According to David Kuo, from the investment advice website Motley Fool, the average person in the UK spends around £32,000 a year. This is made up of £25,000 on basic expenses (transport, food, clothing etc) and £7,000 on mortgage repayments.
So, the average household needs a gross salary of about £45,000 just to break even. In his opinion the average person in the UK won’t be happy unless they earn around £50,000 a year. And that may still be a hand-to-mouth existence.
Someone earning a salary of £100,000, should be able to retire in reasonable comfort provided they invest their disposable income carefully. They could amass a pension pot of around £550,000 after 10 years and almost £1.8m after 20 years. Of course, this assumes that a person on £100,000 is prepared to live modestly, spend carefully and save diligently. What’s the chance of that, I wonder.)
Source – BBC Magazine