The perils of earning £100,000 and why it's about to get worse
www.thetimes.com
Date posted: May 20, 2025 at 12:16am
It sounds like a lot, but for those with a young family earning a low six-figure salary can put you on a cliff edge where a £2,000 pay rise will cost you £12,000
Expanded Summary
In the article titled "The perils of earning £100,000 and why it's about to get worse," the author explores the hidden financial challenges faced by individuals earning a seemingly comfortable six-figure salary, especially those with young families. While a £100,000 income might suggest financial security, it can instead lead to a precarious financial situation where a modest pay increase can trigger significant tax implications and loss of benefits. This paradox highlights the increasing cost of living, the burden of childcare expenses, and the creeping effect of taxes, which can ultimately leave families feeling financially strained despite their high earnings. By dissecting these economic pressures, the article aims to shed light on the broader implications for middle-income earners in today's economy and the strategies they might need to adopt to navigate these challenges effectively.
What you’ll learn
You will gain insight into the financial realities of earning a six-figure salary in today's economy.
The article reveals how a small pay rise can lead to significant financial setbacks due to taxation and lost benefits.
Readers will discover strategies to mitigate the economic pressures that come with higher earnings and family responsibilities.
Why this matters
This discussion is crucial as it uncovers the often-overlooked struggles of families earning a six-figure income, emphasizing the need for greater awareness and financial planning. Understanding these challenges is essential for both individuals and policymakers, as it highlights the disparity between perceived and actual financial security. As living costs continue to rise, acknowledging the financial cliff that many families face can help drive conversations about necessary reforms in taxation and support systems.
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