If you earn a six-figure salary, you probably think your paycheck is well above average. But the truth is, that’s not quite enough to break into the top 1% of UK income earners. Reaching this elite club is all about effective financial planning and embedding good financial habits into your daily life. It also involves diversifying your income sources and often requires investing your wealth into something that pays dividends (literally).
Salaries vary widely across the UK, depending on location and job role. In general, salaries increase with experience and career progression, but if you’re fresh out of university, it might take some time before your salary reflects your skills and qualifications. Source theinvestorscentre.co.uk
Top 1% Salary UK: How Much Do You Need to Earn?
Salary data is also impacted by regional differences in living costs, so be sure to factor that into your calculations when thinking about average salary figures for your area. For example, if you work in London, you can expect to earn significantly more than someone in the same role in a rural region of the UK.
The top 1% in the UK earns PS15,081 or more per month before tax. That’s around PS1.8 million per year. That puts them far above the national average wage and almost a quarter of a million higher than the lowest paid professions, such as accommodation and food services.
However, it’s worth bearing in mind that the average salary of the UK’s top 1% includes high earnings from non-salary sources such as partnerships and dividends. These are taxed at lower rates than salaries, which can help to bolster the net income of those in this group.