Easyjet pilot in The Guardian (re: pay)
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Easyjet pilot in The Guardian (re: pay)
https://www.theguardian.com/business...ays-uk-economy
interesting.
EasyJet pilot McKenzie, a father of three, has similar plans: he will soon trade his full-time contract for a part-time one and flip properties on the side.
“I’m a captain, and the only reason I’m still working full-time is because my pension pot is small, due to time abroad. I currently contribute the maximum £40,000 to my pension, but in a few years I’ll absolutely go part-time, like a significant number of my colleagues already have, to avoid paying an effective tax rate of 62% [including 2% national insurance, on income between £100,000 and £125,140 due to the loss of the personal tax-free allowance].
“It’s just not worth it to wake up every day at 3am to work in the job I trained for: I’ll have the same take-home pay as I do now – £5,000 a month – by going part-time and reducing my pension contributions.
interesting.
EasyJet pilot McKenzie, a father of three, has similar plans: he will soon trade his full-time contract for a part-time one and flip properties on the side.
“I’m a captain, and the only reason I’m still working full-time is because my pension pot is small, due to time abroad. I currently contribute the maximum £40,000 to my pension, but in a few years I’ll absolutely go part-time, like a significant number of my colleagues already have, to avoid paying an effective tax rate of 62% [including 2% national insurance, on income between £100,000 and £125,140 due to the loss of the personal tax-free allowance].
“It’s just not worth it to wake up every day at 3am to work in the job I trained for: I’ll have the same take-home pay as I do now – £5,000 a month – by going part-time and reducing my pension contributions.
Last edited by hargreaves99; 13th Feb 2023 at 15:42.
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It only seems to be pilots that have this concern though. I've plenty of friends earning similar for whom part time isn't even remotely on the radar. Perhaps is a function of our role being more compatible with part time rosters compared to corporate jobs?
Senior doctors are retiring “early” for exactly this reason. It’s therefore on the government’s radar. But they aren’t doing anything quickly about it.
Majority of the UK aren’t. Case in the point is how many people opt out pensions, have never heard on an ISA, live their entire lives on a credit card.
A good number of people will be totally totally oblivious to the personal allowance trap.
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As suggested above, he'll hit the current lifetime allowance fairly quickly with pension contributions like that, which is the same reason so many doctors are retiring early/moving abroad. Apparently, for senior judges neither the annual or lifetime allowances apply, I think they're one of the very few groups which aren't affected.
Ironically, I reckon lots of pilots going part-time will reduce supply and possibly increase pay and conditions as a result, which in return may result in even more pilots going part-time. I have a pipe dream that it'll be like the US where flying two days a week can get a narrowbody captain $250k a year!
Ironically, I reckon lots of pilots going part-time will reduce supply and possibly increase pay and conditions as a result, which in return may result in even more pilots going part-time. I have a pipe dream that it'll be like the US where flying two days a week can get a narrowbody captain $250k a year!
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This is a huge reason for UK GP and Senior Drs having to reduce hours to avoid crashing Annual Allowance, and leave pension schemes because of the LTA effect. The treasury were aware of this 5 years ago and have done nothing. Before dropping hours at one stage my effective marginal tax rate was 102%. And now, like many others docs, I’ve found something else to do. So emphatically not just an Aviation issue.
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I cannot speak for the industry as a whole but I can talk for myself and the majority of people I know who are pilots and they are are completely fed up. Yes the flying is fun and we are a great bunch on the FD but none of my peers would recommend anyone being a pilot, I don’t know if this normal as I have never worked in another industry but it doesn’t seem right.
If you look at the potential risks to our career the remuneration does not stack up. I know someone who is on £500K a year and is in awe of our profession but in shock when I explain exactly what it entails.
If you look at the potential risks to our career the remuneration does not stack up. I know someone who is on £500K a year and is in awe of our profession but in shock when I explain exactly what it entails.
I cannot speak for the industry as a whole but I can talk for myself and the majority of people I know who are pilots and they are are completely fed up. Yes the flying is fun and we are a great bunch on the FD but none of my peers would recommend anyone being a pilot, I don’t know if this normal as I have never worked in another industry but it doesn’t seem right.
If you look at the potential risks to our career the remuneration does not stack up. I know someone who is on £500K a year and is in awe of our profession but in shock when I explain exactly what it entails.
If you look at the potential risks to our career the remuneration does not stack up. I know someone who is on £500K a year and is in awe of our profession but in shock when I explain exactly what it entails.
Ridiculous to say absolutely no one would recommend it, then why are they doing it themselves?!
£120k a year to schlep back and forth to Tenerife may not be the most adrenaline fuelled job but it’s 10x easier than making that sort of money in a normal job.
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Ok feel I have to put my 2p in.
As someone else mentioned where else can you earn 6 figures with such ease?
When I was training I was in an ok paying job, £45k a year 10 years ago. To get that 40k a year though I was putting in 50 hrs a week minimum. At least once a week started at 6am and finished at 8pm. My partner earns around the same as Cap at Easy and yes some days she barely does anything working from home but other days she can be in a business meeting at 10pm. If we go away on holiday she will get called at least once for something urgent.
Couple of doctor friends been in it 15 odd years and they are not on £100k. The stories they told me it sounds awful.
Bankers/Lawyers yes some bringing in some big £££££k but the amount they had to put in early on is ridiculous. Banking grad scheme often starting around £40k but 70 hour weeks are not unheard of. Works out at almost minimum wage.
Im not in LHS myself however having had a career before this is much easier. Don’t get me wrong there are negatives. Overall I love the fact you go do your work and once you close the door that’s pretty much it.
As someone else mentioned where else can you earn 6 figures with such ease?
When I was training I was in an ok paying job, £45k a year 10 years ago. To get that 40k a year though I was putting in 50 hrs a week minimum. At least once a week started at 6am and finished at 8pm. My partner earns around the same as Cap at Easy and yes some days she barely does anything working from home but other days she can be in a business meeting at 10pm. If we go away on holiday she will get called at least once for something urgent.
Couple of doctor friends been in it 15 odd years and they are not on £100k. The stories they told me it sounds awful.
Bankers/Lawyers yes some bringing in some big £££££k but the amount they had to put in early on is ridiculous. Banking grad scheme often starting around £40k but 70 hour weeks are not unheard of. Works out at almost minimum wage.
Im not in LHS myself however having had a career before this is much easier. Don’t get me wrong there are negatives. Overall I love the fact you go do your work and once you close the door that’s pretty much it.
As a group we tend to be fairly financially literate.
Majority of the UK aren’t. Case in the point is how many people opt out pensions, have never heard on an ISA, live their entire lives on a credit card.
A good number of people will be totally totally oblivious to the personal allowance trap.
Majority of the UK aren’t. Case in the point is how many people opt out pensions, have never heard on an ISA, live their entire lives on a credit card.
A good number of people will be totally totally oblivious to the personal allowance trap.
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Discussion about how well or badly paid the job is for the work involved - is completely missing the point; the pay is set by the market, and not wet behind the ears "aerosexuals" who would do it for free.
The fact is that captains go part time or quit altogether in huge numbers, and that is due in large part to the brick wall of tax (62%) when one goes above £100k (and partly of course, the frustrations, family disruption and deleterious health effects of the job). And due to fiscal drag and inflation, this is no longer a problem for just super rich hedgies (for trainers, even max pension may not be enough to drop below 62%). The country is simply creating a damaging shortage of experienced professionals with this punitive band of tax.
The fact is that captains go part time or quit altogether in huge numbers, and that is due in large part to the brick wall of tax (62%) when one goes above £100k (and partly of course, the frustrations, family disruption and deleterious health effects of the job). And due to fiscal drag and inflation, this is no longer a problem for just super rich hedgies (for trainers, even max pension may not be enough to drop below 62%). The country is simply creating a damaging shortage of experienced professionals with this punitive band of tax.
Only half a speed-brake
Im not in LHS myself however having had a career before this is much easier. Don’t get me wrong there are negatives. Overall I love the fact you go do your work and once you close the door that’s pretty much it.
Please share more on how aviation works well for the smart and successful. What you are missing is that the rest of us are neither.
Last edited by FlightDetent; 16th Feb 2023 at 11:59.
Discussion about how well or badly paid the job is for the work involved - is completely missing the point; the pay is set by the market, and not wet behind the ears "aerosexuals" who would do it for free.
The fact is that captains go part time or quit altogether in huge numbers, and that is due in large part to the brick wall of tax (62%) when one goes above £100k (and partly of course, the frustrations, family disruption and deleterious health effects of the job). And due to fiscal drag and inflation, this is no longer a problem for just super rich hedgies (for trainers, even max pension may not be enough to drop below 62%). The country is simply creating a damaging shortage of experienced professionals with this punitive band of tax.
The fact is that captains go part time or quit altogether in huge numbers, and that is due in large part to the brick wall of tax (62%) when one goes above £100k (and partly of course, the frustrations, family disruption and deleterious health effects of the job). And due to fiscal drag and inflation, this is no longer a problem for just super rich hedgies (for trainers, even max pension may not be enough to drop below 62%). The country is simply creating a damaging shortage of experienced professionals with this punitive band of tax.
yet many on here would advocate a higher rate for the rich!
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Well as you can see, it is completely counter productive - the Exchequer loses, (not gains) tax revenue from the money that instead goes into the pension, or is not earned/worked because the pilot reduces their hours so as to be below £100k. And the country consequently has a shortage of professionals (particularly if they instead decide to emigrate to a less punitive tax regime). You want higher than 62%?!!! - extracting nigh on two thirds is already arguably in the category of state expropriation/Marxism, and workers push hard against it. Ever heard of the Laffer curve? The absurd unfairness is that it drops back down to 45% above £125k.
Last edited by midnight cruiser; 16th Feb 2023 at 10:42.
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To me it's fairly simple, you can't change the rules so you adapt to them. I'm going to keep loading up my pension for a few more years, then I'm going to move abroad and see out the rest of my career tax free until I get to the point I want to/can retire. Doesn't seem that complicated.
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To me it's fairly simple, you can't change the rules so you adapt to them. I'm going to keep loading up my pension for a few more years, then I'm going to move abroad and see out the rest of my career tax free until I get to the point I want to/can retire. Doesn't seem that complicated.