Is £60k a Good Salary in the UK?

This article will examine whether £60k is a good salary in the UK. It’s hard to imagine what you can get for a specific salary without actually earning it.

I’ve spent over ten years working in the UK, from part-time employment during uni to graduate jobs. I’ve experienced all types of salaries so I can tell you what you’ll get for £60k.

£60k is a great salary to have in the UK. It lies above the average wage of £30k, so earning £60k means you can afford some luxury. Of course, this also depends on your circumstances and location.

How Does £60k Compare to the Average Salary in the UK?

The average salary in the UK is as follows:

• London: £42,000
• South East: £34,000
• Scotland: £33,000
• East: £33,000
• West Midlands: £32,000
• South West: £31,000
• North West: £31,000
• Wales: £31,000
• East Midlands: £30,000
• Yorkshire: £30,000
• Northern Ireland: £30,000
• North East: £30,000

As you can see, £60,000 per year is a high UK salary and above average for every region in the UK. In some areas, it is double the average wage. You can afford a good living standard wherever you live.

To give you a better idea, you look at how good a salary of £50k is.

Is £60k a Good Salary in London?

London has higher costs of living than the rest of the country. You need a higher salary in London to have the same living standards as elsewhere. The average salary in London is £42,000. With £60k, you can still afford a good quality of life, even in a place as expensive as London.

How Much Is £60k After Tax?

A pre-tax salary of £60,000 yields £43,415 annually after tax. The annual income translates to a monthly take-home pay of £3618.

Salary	Yearly	Monthly
Gross salary	£60,000	£5,000
Income tax	£11,432	£953
National insurance contribution	£5153	£429
Net salary	£43,415	£3618

Your paycheck may be lower. The table does not consider pension contributions, student loan repayments, and other costs. Your take-home pay will be higher if you have a higher tax-free allowance.

How Much Can You Afford on a £60k Salary?

1. Rent

Experts in the UK recommend not spending more than one-third of your gross salary on rent. Thus, you can afford to spend around £1500 monthly on rent. This is a guide, and some people may spend more or less on rent.

In London, the average rent for a one-bedroom flat is around £1500. Rent varies widely, as you can find the most luxurious flats in the country in London. These also come with exorbitant price tags.

Outside of London, rents are lower. A one-bedroom flat averages between £600 to £700 per month. If you rent outside the capital, you can afford more upscale flats.

2. Buying a House (Mortgage)

On a £60k salary, you can get a mortgage of up to £270,000. The exact amount depends on your circumstances. You should consult a mortgage broker for a precise estimate. Most banks will require a 10% deposit. Including this, you could afford houses or flats priced up to £300,000.

With the average house price being £296,000 in the UK, you can just about make it on the property ladder. London, of course, is different. In the capital, house prices average £542,000.

You may still be able to buy property in London, though. If you opt for a flat and are happy to live outside the city centre, there should be flats within your budget. Or you can do what many Londoners do and buy a studio.

3. Food

You also need to consider food costs. The average grocery costs in the UK are £189 per month. The exact costs vary depending on what you buy. For specific diets, grocery costs can be much higher, up to £300 per month.

Assuming you spend one-third of your salary on housing, you have £2000 left for other expenses. This amount easily covers food expenses, no matter where you live in the UK.

4. Other Costs

Other costs include utility bills, travel, car, and entertainment. You should have plenty of money left for these items.

5. Savings

You should be able to save money every month. How much you can save depends on your lifestyle. If you want, you can consider retiring early. You should be able to escape the rat race after around ten years of working.

6. Debt

If you have debts, you should prioritise repayments in your financial planning. On your salary, you should be able to dedicate funds from your budget towards debt management.

Can You Raise a Family on a Salary of £60k?

As you can see from above, a single person can live well on £60k. But what if you want to raise a family? The average cost of raising a child is £11,000 per year or £980 per month.

This number varies depending on you and your child’s circumstances. It is only a general estimate. The cost of raising two children isn’t double that of one child since certain things can be shared. Thus, you can raise a child. If you have two children, you should also be able to manage, albeit less comfortably.

Are You Wealthy if You Earn £60k per Year?

Wealth measures how much resources you have in terms of money. It includes the savings and investments you have, your property, and all other assets. It is independent of how much you earn.

Someone with a zero salary can be wealthy if they have a lot of resources. Someone on a salary of £100k can be poor if they spend everything they earn.

You are not wealthy per se on a salary of £60k. Yet, this salary enables you to save a lot of money, meaning you can be wealthy if you want to.

Is £60k a Good Salary in the UK? Summary

£60k is an excellent salary and above the average in every area of the UK. You can live comfortably and afford some luxury. You should also be able to raise a child on this salary.

How far your salary reaches depends on your lifestyle. If you splurge a lot, you may also live paycheck to paycheck. Remember that salary is not everything. Job satisfaction is also crucial.

You may also want to learn how good a salary of £70k is.

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