Income brackets: PERCEPTIONS of low and high?

ladeeda

I think Northern Ireland wages are lower in general. I would perceive that anybody earning less than 22,000 would be a low wage and anybody over 60,000 a high wage. Not rich by any means but comfortable. Over 150,000 to start being well off.

lostinrates

ladeeda wrote: »

I think Northern Ireland wages are lower in general. I would perceive that anybody earning less than 22,000 would be a low wage and anybody over 60,000 a high wage. Not rich by any means but comfortable. Over 150,000 to start being well off.

Welcome to Mse ladeeda.

SingleSue

Before my marriage broke down, we were earning jointly in excess of 65k a year and classed ourselves as middle earners. This was with 3 young children, renting and pension contributions.

In our view, high income was around the 100k mark and low earners anything below 30k.

Now, I would be chuffed to bits to get a job paying around 20k but would expect after having the time out I have had to have, getting one more around minimum wage although my perception of low, middle and high has not really changed since the mid 2000s.

ladeeda

lostinrates wrote: »

Welcome to Mse ladeeda.

Thank you lostinrates.

Your a feisty but well informed lot over here, I might have to behave..

vivatifosi

My perceptions have changed massively over the last 5 years. Prior to that, although from a working class background, I socialised with a lot of people from the same company/industry and slowly it had become the norm. Back then, I'd have said average was about £40-50k, high over 100k, very high, over 300k. I wouldn't have given much thought to what was low.

Working in the public sector and public facing, I've become much more aware of low income families and my perceptions have changed. £20k and below would be low, about £30k more middling, £50k plus high. That's for an individual.

More specifically, I think people on low incomes have to make day to day decisions on things that wouldn't trouble someone on a more moderate income.. for example, can they afford a new pair of shoes or should they save for heating? I know many people in this boat. Most are low waged singles, so not entitled to top ups.... not a straightforward answer, sorry.

lessonlearned

I agree that perception of wealth will be based on the individual's own experience rather than any tax bands.

I think part of the equation would have to take into account living costs and outgoings.

So a "total renumeration" - as opposed to a salary - that appeared ludicrously low to one person might seem riches to another.

I once had an interesting conversation with a lady who was retired with a state pension and pension credit giving her a total annual income of £7540, tax free. She had no mortgage and was in receipt of council tax benefit, free bus pass etc.

I asked her if she found it difficult to live on that amount. She laughed uproariously and said she had never had such a large amount of disposable income before. Apparently when she was working, paying her mortgage, raising children she also had a very expensive hobby - keeping horses……

She said she had to give up horses because of a back injury, the children were all grown up and self sufficient and £145 per week was plenty.

She lived alone, had a wide circle of friends, plenty of interests and hobbies and went out at least once a day and most evenings. She went on a short holiday or trip every couple of months. Maybe she was just a very canny money manager but she said she genuinely lacked for nothing.

At the other end of the scale I know a pair of dentists, he earns around £70K and she pulls in around £120K because she is very skilled and does high end cosmetic work. This is gross income and of course they do have costs associated with running and maintaining their practice. They have two young children. Yes they can be described as comfortable but not necessarily rich because of their high level of outgoings, including taxation.

As for retirement and leisure costs - well they can be as cheap or as expensive as leisure costs for working people - it depends on your vices:rotfl:

I think most activities do have some form of concessionary rates for retirees, so many activities will actually be cheaper for retirees than for younger working people.

There are of course lots of associated costs incurred with working, such commuting, a work wardrobe, lunches and snacks, etc.

Re tax credits for the low paid in our big cities.

Not all of these essential workers will be employed by private enterprise. Many low paid workers are employed by local councils or city corporations - refuse collectors, street cleaners, park attendants, hospital workers, paramedics, ambulance drivers, carers, teaching assistants, young police officers and firemen.

Unless some of those services have been contracted out then local government will be paying their wages, not private companies. So, in this instance, it will not be a case of tax credits underwriting the profits of big business, but rather they will be propping up Local Authority funding.

On a personal level I now have a renumeration package which is a fraction of what my OH and I earned say 10 years ago. However, I find my income more than sufficient for my needs.

I am currently starting a new business enterprise - not because I need the money as such but because I enjoy what I do and I love the challenge involved in running a business.

Like the lady I mentioned earlier I feel quite wealthy. I am happy and content, I feel that I live well and lack for nothing.

lessonlearned

Money - I know this is a bit "off thread" but I am fascinated by your updates in your signature regarding your house renovations.

Are those costings right. Are you rebuilding it from the ground up:rotfl:

I thought DS1's house was a bit of a Money Pit, (the scaffolding goes up next week - £1800 - ouch:eek:) but you make me look like a right skinflint by comparison.

I am haggling, bartering, bargain hunting, trawling the reclamation yards and second hand shops. Revamping and repurposing as I go.

Gotta nail down those costs.

LydiaJ

chewmylegoff wrote: »

The thing is it's difficult to know what the measure of "income" should be.

On a basic level, let's call my pay 1,000 widgets. I also receive a bonus of about 200 widgets a year and a pension contribution of 120 widgets a year. I get medical insurance and other flexible benefits worth a further 100 widgets and I also get about 5 days more holiday than most people. Furthermore I can work at home whenever I want and I can work flexible hours these don't have a cash value but they do have an obvious value.

My remuneration package is therefore a lot higher than someone who earns 1,100 widgets with a 22 widget pension contribution, but the way most people refer to income they focus entirely on the basic salary.

Furthermore, gross salary from employment ignores any benefits and investment income a person may be earning and the rate of tax that person pays.

Really what you need to know is total remuneration after taxes including all non cash benefits and all welfare receipts but no-one ever tells you what that is they just say "I earn £30k".

Exactly. I can never see how I fit into discussions like this because my income is so complicated that it's difficult to make a direct comparison between my circumstances and people whose financial lives are more conventional.

Still, I did one of those things where you type in details, and it said that for my household size (1 adult, 2 kids) I'm about median. I feel about median, so I'm pleased I've been so accurate.

Perceptions of wealth are weird, though. I know friends who feel "struggling" financially, whereas I feel "comfortable", and then I discover that although one of the couple is earning about as much as I am, the other partner is clearly earning quite a lot more, because the 40% tax rate gets mentioned.

ladeeda wrote: »

Thank you lostinrates.

Your a feisty but well informed lot over here, I might have to behave..

Welcome indeed. The debate board has some good threads, and some that descend into mudslinging. There's a lot to be learnt from the good ones, though. There is also a thread that you might enjoy but where you would definitely have to behave...

Generali

Low is less than I've earned for a full time job in the last five years.

High is more than I can reasonably expect to earn in the next five years.

bugslet

TheFactory wrote: »

I grew up in Runcorn, my family still live there. If you are earning 20k in runcorn you are doing alright! If your earning 60k, you don't live in Runcorn anymore.

Ah bad luck on the growing up in Runcorn bit:rotfl:, I guess you left, I keep trying!

Don't forget the 'posh' bits by the golf course, a couple of those houses have been marketed in the half a million bracket ( what they went for I'm not sure), but would indicate there are people making that money.