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90K a month in Stockholm

Decent salary or not?

Bobmcbob
post 12.Nov.2017, 12:09 AM
Post #1
Joined: 11.Nov.2017

I work in Banking and have an offer from a Nordic Bank for around 90k a month. This is similar in real terms to my London salary (100k GBP), and looks comparable in terms of living costs.

Swedish taxes look a fraction higher, but you get what you pay for. Would there be any real changes in my lifestyle at this salary point ( I am single) in Stockholm?
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deaftoned
post 12.Nov.2017, 08:48 AM
Post #2
Joined: 3.Dec.2010

90k? wow what kkind of bank work is this?
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Cheeseroller
post 12.Nov.2017, 03:54 PM
Post #3
Location: Germany
Joined: 10.Apr.2007

Based on UK tax, single etc you have net £65,776 i.e. 35% tax + NI. In Sweden, your net is 52921 kr from 90k kr i.e. 48%. I don't think living in Sweden will give you the 10K different in value!

Also bear in mind
1) if you buy house/apartment in Sweden and sell to return to UK, you pay 22% tax on profit.
2) contributions to the SE pension are not transferable if you leave, and start at 0 for calculation of pension amount. Working in banking, you will know that pensions have a kind of exponential curve - it's not until you pay tax for 30 to 35 years that you get max pension. So if you don't make other provision, paying historically into the UK pension and then later SE pension, the total is less than staying in one country. This is certainly something I did not understand prior to moving.
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Bobmcbob
post 12.Nov.2017, 04:17 PM
Post #4
Joined: 11.Nov.2017

Thanks for the response and doing the sums.

Seems a non-starter as would be taking a significant pay cut AND jeopardising my future pension!

The pension question is not one that I considered and having no ability to transfer almost breaks the deal from my end.

Will see what kind of negotiation is available on the offer as I’m in quite a strong position, but looks like would need to be 100-110k to break even.

Shame, as I was warming to doing a few years in Stockholm
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Essingeviken
post 12.Nov.2017, 08:19 PM
Post #5
Joined: 12.Mar.2017

QUOTE
contributions to the SE pension are not transferable if you leave


Of course,that doesn't mean that the contributions are lost. They are kept in Sweden until retirement and indexed in a way that means they gradually lose value. When they are eventually paid, Sweden would deduct non-reclaimable tax from it.

All the banks (except one) have recently moved to a defined contribution pension scheme for the occupation pension element. (The state scheme is already defined contribution). This means that for about SEK 50 k per month of your salary, you would get 30% to invest in funds. On the remaining 40 a month, you would get 4% a month to invest and you state pension contribution would be paid (about SEK 70,000 per year). This is all pretty crap in my opinion.

The Swedish government is very proud of it pension scheme for the following simple reasons...
1. It pushes all the risk on to the recipients.
2. It pays out very little.
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Svedallas
post 13.Nov.2017, 10:31 AM
Post #6
Joined: 21.Apr.2016

QUOTE (Bobmcbob @ 12.Nov.2017, 12:09 AM) *
I work in Banking and have an offer from a Nordic Bank for around 90k a month. This is similar in real terms to my London salary (100k GBP), and looks comparable in terms of l ... (show full quote)


First of all, you cannot compare Sweden and UK living standards.

How can you ask if there will be a change in lifestyle? Kind of a shallow question.
No one will really care you are a banker...if that is what you are asking...
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Cheeseroller
post 13.Nov.2017, 11:35 AM
Post #7
Location: Germany
Joined: 10.Apr.2007

I was interested to make a comparison with Germany. Assuming 30 years old and 90k€ pa.

If single, no kids: 50.486€ net. 44% deductions
If married, no kids: 58.400€ net. 35% deductions

If you lived 10km or more outside of Frankfurt, a 2 bedroom apartment 64m2, costs around 500€ "cold rent", plus maybe 150€ for utilities. ie.
https://www.immobilienscout24.de/expose/100...-f2653373acb6#/

Food costs in Germany are similar to the UK, 30-40% lower than Sweden. VAT is 19%.
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