Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
An annual salary of £55,000 is a very good wage in the UK. It is above the national average and would be more than suitable for living in an area like London.
If you live somewhere where the cost of living is significantly lower, you can expect your £55,000 salary to go even further.
To find out more about whether a £55k salary in the UK is good and what you can do with it, keep reading below.
For some people, job satisfaction is the most important thing when considering a career. Other people are more money-oriented and train for roles that offer the best salaries.
If you are lucky, you will find a job you love and that pays well. But what is considered a good wage in the UK today? With rising energy and product prices, a pound doesn’t stretch as far as it used to.
Join me on the journey to discover whether an annual salary of 55k is as good as it sounds.
Table of Contents
Is 55k A Good Salary In The UK?
Let me start off by saying yes, a £55k salary in the UK is a good wage. This is based on statistics that show the average UK salary in 2022 was around £33k.
Even when you look at the highest median income in London of £41,866 per year, you can see that £55k is well above this.
According to the Institute for Fiscal Studies, an annual salary of £55k is higher than around 90% of the UK’s population.
This information is based on a £55k median household income with an average band D council tax of around £2,000 per year.
An average salary of £55k or higher is typically available in mid-tier or senior management positions.
Experience in the sector will be essential to securing this type of position. Entry-position jobs will be significantly lower.
Breaking Down A 55k Salary
It is important that anyone looking at average salaries in the UK also considers what will be paid in income tax and national insurance.
In the UK, workers will not pay tax on the first £12,570 they earn every year. After this, the basic rate of 20% kicks in for anything earned between £12,570 and £50,270.
If you earn £55k per year the £4,730 above the £50,270 threshold will be taxed at the higher rate of 40%.
This means that your annual income tax bill would work out at £9,432. You would also pay £5,149 in National Insurance (NI). This would leave a take-home pay of £40,419.
To break this down further I can also look at what this means on a monthly and weekly basis.
A £55k annual wage would provide a monthly amount of £4,583. You would then pay £786 in tax and £429 in NI. You would be left with a monthly take-home pay of £3,368.
Weekly pay for this amount would be £1,058. A tax of £181 and NI of £99 would result in a take-home pay of £777 per week.
UK Salary Calculator
Results:
To make this easier to understand, here is the important information:
Annual £55k Breakdown
- Wage – £55k
- Tax – £9,432
- NI – £5,149
- Take Home Pay – £40,419
Monthly £55k Breakdown
- Wage – £4,583
- Tax – £786
- NI – £181
- Take Home Pay – £3,368
Weekly £55k Breakdown
- Wage – £1,058
- Tax – £181
- NI – £99
- Take Home Pay – £777
Daily £55k Breakdown
- Wage – £211.60
- Tax – £36.20
- NI – £19.80
- Take Home Pay – £155.40
Hourly £55k Breakdown
- Wage – £26.45
- Tax – £4.53
- NI – £2.48
- Take Home Pay – £19.43
Can You Live Off A 55k Salary?
Living off a £55k salary should be relatively straightforward. However, there are always factors that need to be considered.
A single person with no outstanding debts or responsibilities will be able to live comfortably off a £55k wage.
Responsibilities that might affect what you can afford with a wage like this include:
- Dependents
- Mortgage
- Car Payments
- Student Loan Debt
- University Fee Debt
This wage should still allow most people to live comfortably, even with other responsibilities.
How Much Rent Can You Afford On A 55k Salary?
It is generally accepted that spending around a third of your post-tax income should be at the top end of what you spend on your rent.
With a monthly take-home pay of around £3,386 from a £55k annual wage, you would have up to £1,120 to spend on your rental payments.
Can I Buy A House With A 55k Salary?
A £55k annual wage should give you the finances to fund buying a property. You will typically need to save for a deposit in the UK to be given a mortgage.
This amount is usually around 5% of the property’s value, but this can go up to as much as 15%.
Other factors might affect your ability to get a mortgage, even if you can afford one, including any existing debts you have and your credit score.
Tips For How To Live Off A 55k Salary
Living off a £55k wage is easy if you know how. Thankfully, I have tips that can help.
Budget and save
Even though £55k is a good annual wage, it is sensible to budget.
You should keep track of all your monthly outgoings to come up with a figure for how much spare money you have every month.
Setting some of this aside in a high-interest savings account will provide security. It will also help to set you up for the future.
Pay off debt
If you have existing debts, trying to pay these off can minimise the interest that accrues and help you to save money over time.
Overpaying a mortgage by even a small amount every month can also make a significant difference over time.
Invest
If you have spare cash, investment options might be something that interests you. Financial investments can be an excellent way to get a good return on your money.
If you aren’t experienced in investments, getting the help of a financial advisor may help.
Stop waiting and start investing with the best UK investing apps on the market right now.
We've covered all levels with expert managed and DIY options available.
FAQs
Will the gender pay gap affect how much people earn in the UK?
A government report in 2021/22 showed the difference in average hourly pay between men and women is 5.45%.
What age group is most likely to earn £55k per year in the UK?
Workers aged between 40-49 are most likely to enjoy the highest wages. This will partly be down to the experience they have gained while working.
Does earning £55k per year in the UK make someone middle-class?
Earning £55k per year would see you classed as middle-class all across the UK.
Is earning £55k in the North East better than in London?
Because the cost of living and property is lower in the North East, earning £55k per year would go a lot further than in London.
Final Thoughts
A salary of £55k per year is a good amount. However, other factors will come into what someone with this kind of money can afford.
Existing debts or responsibilities can have an impact. However, this wage should be enough to clear debts over time and enjoy a comfortable lifestyle.
Share on social media
Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
