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Monday, April 22, 2024

Breadwinners Need to Earn More Than £40k to Live an Average Lifestyle

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New research shows how much is needed to live the life of the UK’s average household, one person would need to earn £42,781, while a couple would need to be paid £18,714 each, a household would need one person to earn an annual salary of £42,781 to be able to live an average life.

The average household is made up of 2.4 people, and has annual outgoings of £30,571, while also saving £2,160 per year, according to statistics from the ONS.

Research from IVA Advice reveals that a single breadwinner in the household would need to earn £42,781, giving them an after-tax income of £32,731 to account for the UK’s average spending and saving.

Despite covering the typical outgoings of a UK household, the salary itself is 37% above the national average.

According a range of job websites, positions paying an average of £42,781 per year include the role of Team Leader in Warwickshire County Council, an environmental engineer in Strood, and a Pharmacy Manager in West Bromwich.

Alternatively, if two people are bringing in a salary, they each need to earn £18,714 a year, which equates to a net wage of £16,366 each.

The annual income is 18% below the national average, but two people earning the amount would be able to live the UK’s average lifestyle.

Jobs in which people can make around £18,714 a year include a Forklift Counterbalance Operative, a Production Factory Operative, a JD Sports Fashion Assistant Manager, or a Legal Assistant in Wales.

The average UK household budget breaks down to £2,548 a month, with some of the biggest monthly costs including housing, i.e. paying a mortgage or rent, at £309, food and drink at £279 and recreation and culture, such as pet and TV fees costing £205.

The study was conducted by IVA Advice to raise awareness of the importance of keeping track of household finances. 

Commenting on the study, a spokesperson for IVA Advice said:

“These figures show that a person needs to earn a considerable wage for their household to live the UK’s ‘average’ life.

“People often feel under pressure to have the newest and best things, never mind just the ‘average’.

“So, it’s not surprising that people can easily overspend and find themselves in debt trouble very quickly.”

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