UK v US salaries?
Discussion
So, I've been offered a job in Chicago for a reasonable amount over the going rate in my field so all good there.
The question I have is, how do you compare a US salary (Chicago) to it's UK (London) equivalent? For example, what would say a $100k p.a. be the equivalent of in the UK in real terms? Is there a general % rule of thumb or something?
Any pointers would be useful as I obviously don't want to accept and then find I'm out of pocket.
The question I have is, how do you compare a US salary (Chicago) to it's UK (London) equivalent? For example, what would say a $100k p.a. be the equivalent of in the UK in real terms? Is there a general % rule of thumb or something?
Any pointers would be useful as I obviously don't want to accept and then find I'm out of pocket.
That could be slightly misleading, unless you intend to buy 100,000 big macs. It's a somewhat useful indicator sometimes, but like all statistics it's floored, and in this instance I would say massively so.
There are a few websites but I can't find them.
It really though depends what you want to spend your money on. If you spend a lot on petrol, housing and big macs then you are very likely to be better off in Chicago. If you spend it on European holidays then London is probably a better bet. I can't think of anything else that might be cheaper or more accessible from London but I'm sure others can.
There are a few websites but I can't find them.
It really though depends what you want to spend your money on. If you spend a lot on petrol, housing and big macs then you are very likely to be better off in Chicago. If you spend it on European holidays then London is probably a better bet. I can't think of anything else that might be cheaper or more accessible from London but I'm sure others can.
One thing to take into account if relocating for a long period of time is the health and education costs for you and your kids.
In the UK I think we pay more tax, but have the NHS and heavily subsidised university education, in the US, you have to get medical insurance and save to send your kids to college.
The Big Mac index can be pretty useful though! As some said, it depends on what you like to spend your earnings on, how close your ties are with friends and family in the UK, and so on.
In the UK I think we pay more tax, but have the NHS and heavily subsidised university education, in the US, you have to get medical insurance and save to send your kids to college.
The Big Mac index can be pretty useful though! As some said, it depends on what you like to spend your earnings on, how close your ties are with friends and family in the UK, and so on.
When I lived out there the exchange rate was about $1.80 to £1.00.
Effectively my salary in US Dollars bought me a lifestyle equivalent to the lifestyle i would get in the UK on the same number of pounds. So for instance a $50k salary was like having £50k in the UK.
Edit: I did skimp on healthcare though. Bit of a risk but it is pretty expensive for decent cover.
Effectively my salary in US Dollars bought me a lifestyle equivalent to the lifestyle i would get in the UK on the same number of pounds. So for instance a $50k salary was like having £50k in the UK.
Edit: I did skimp on healthcare though. Bit of a risk but it is pretty expensive for decent cover.
Edited by simonej on Friday 9th April 12:24
bogie said:
we moan about paying 7% NI over here, but in the US you could easily spend 20% of your salary on equivalent cover
A friend in California pays a frightening amount per month for cover for him, his missus and 2 kids
Car ins is expensive over there too.
But, you have to offset cheaper (generally) rent etc., cheaper fuel, cheaper cars, cheaper food...so, swings and roundabouts.
Actually, my Big Mac index thing is pretty poor. It seems a Big Mac is around $3.57 in the USA and is £2.29 in the UK. This would equal near parity. http://www.oanda.com/currency/big-mac-index
Though I swear my last Big Mac I purchased only 6 months ago was around £1.89, and everyone I know who went to the 'States on holiday, states that the Big Mac was only $1.00 and was bigger too!
Perhaps real estate is a better measure.
Though I swear my last Big Mac I purchased only 6 months ago was around £1.89, and everyone I know who went to the 'States on holiday, states that the Big Mac was only $1.00 and was bigger too!
Perhaps real estate is a better measure.
callisto said:
Actually, my Big Mac index thing is pretty poor. It seems a Big Mac is around $3.57 in the USA and is £2.29 in the UK. This would equal near parity. http://www.oanda.com/currency/big-mac-index
Though I swear my last Big Mac I purchased only 6 months ago was around £1.89, and everyone I know who went to the 'States on holiday, states that the Big Mac was only $1.00 and was bigger too!
Perhaps real estate is a better measure.
Prices of stuff like Big Macs is not fixed across the USA as they are in the UK so it is not a great indicator. Starbucks is another example the prices vary wildly from state to state and sometimes even branch to branch.Though I swear my last Big Mac I purchased only 6 months ago was around £1.89, and everyone I know who went to the 'States on holiday, states that the Big Mac was only $1.00 and was bigger too!
Perhaps real estate is a better measure.
Ben
I moved to the US with work in December, I'd say a better way is to do Dollar to Pound as someone mentioned, I have a WAY higher standard of life here than I did in the UK, I'm on the top health scheme from my company and it's about $120 a month for the wife and I. I haven't looked back for what it's worth, although we miss our families, but, that said, they can be here in six hours so it's not a massive deal to be honest. Skype makes things easier as well as far as keeping in touch goes and we seem to have none stop visitors! Mail me if you want more info on moving etc.
Cost of living varies incrediably State to State.
You should make your comparisons with Chicago only, unless of course you want drive in from Wisconsin each day
If you do search on the the area where your company is located you can get plenty of data.
Like; median houshold income, add 20% as they usually appear low (to me)
Racial make up of area.
Education level of residents.
Ratio of single family homes to apartments.
You will come across some housing that will appear very cheap....there is a good reason....avoid.
As a newbie house purchase requires 25% up front.
I would say the Pound for Dollar comments are true on disposable income only.
You should make your comparisons with Chicago only, unless of course you want drive in from Wisconsin each day
If you do search on the the area where your company is located you can get plenty of data.
Like; median houshold income, add 20% as they usually appear low (to me)
Racial make up of area.
Education level of residents.
Ratio of single family homes to apartments.
You will come across some housing that will appear very cheap....there is a good reason....avoid.
As a newbie house purchase requires 25% up front.
I would say the Pound for Dollar comments are true on disposable income only.
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