Before You Accept That Job Offer: The Money Stuff Nobody Mentions
You’ve got the offer. Salary’s up. Title’s better. Feels like a win.
But here’s the thing - most people compare job offers by looking at one number: salary. But salary alone isn’t the whole picture.
In fact, there’s some ‘pay rises’ that can actually leave you worse off.
So, here’s a few things to consider before accepting that offer.
Think total compensation, not just salary
The salary number on your offer letter is just the headline, not the full story.
Your actual pay is more than just your base salary. Think about:
Base salary - the obvious bit
Bonus - cash or deferred? Is it actually achievable or just a dangled carrot?
Equity - is there a vesting schedule, a cliff? What's it actually worth?
Pension contributions - this is a big one. We'll get to it.
Allowances - travel, training, subscriptions
Benefits - healthcare, life cover, gym, enhanced leave
A £50k salary with a pretty certain 15% bonus, 12% pension match, and private healthcare is worth more than a £58k salary with a vague bonus promise and a statutory pension contribution.
Always compare the total value of your package, not just the salary.
The pension trap
This is where people quietly lose thousands without realising it.
Example:
Current job: £42k salary + 10% employer pension contribution
New offer: £48k salary + 3% employer pension contribution
Looks like a £6k raise, right?
But with the new job, your employer will put £2,760 less into your pension each year. And that's not just £2,760 lost. It's £2,760 that would have been invested and growing for decades.
To put that in perspective: if that money grew at 7% a year, it could be worth over £20k in 30 years. Of course, investments can go down as well as up - but the principle holds: small pension gaps now can become significant gaps later.
Some other pension stuff worth checking:
What’s the actual employer contribution? They might advertise ‘up to X%’, but only match what you put in.
Is it calculated on total salary or ‘qualifying earnings’? Qualifying earnings excludes the first £6,240 of your salary. [1]
Do they offer salary sacrifice? This means lower National Insurance for you and your employer - can be worth hundreds per year in extra take-home or pension contributions.
Is there a pension probation period? Some employers don't auto-enrol you into the pension until you've passed probation.
A slightly lower salary with a strong pension match often beats a higher salary with a rubbish workplace pension.
Before you hand your notice in: timing matters!
Before you hand that notice letter in, it’s worth checking a few things:
Bonus. When does it get paid out? Most bonuses have conditions - like you don't get it if you're on your notice period. Leaving a week too early could cost you thousands.
Equity. Got shares or options vesting soon? Leaving just before a vesting date is basically throwing money away.
Holiday. You're usually owed pay for unused leave. But not always. Check your contract.
Sometimes delaying your notice by a few weeks could save you thousands.
The tax stuff that catches people out
Emergency tax. Change jobs mid-year and your new employer might stick you on an emergency tax code. You'll be overtaxed for a while until HMRC catches up. Get your P45 sorted quickly and check your first payslip - if you see BR, 0T, or anything with W1/M1, give HMRC a call. [2]
Crossing £50,270. Jump over this threshold and you start paying 40% tax on everything above it. [3] A £5k raise that takes you from £48k to £53k? You're only keeping about 60% of the bit above £50,270.
Child benefit trap. Got kids and heading towards £60k? That's when you start losing child benefit. It tapers off gradually - you lose 1% for every £200 you earn over £60k - until it's gone completely at £80k [4]. A "raise" that pushes you into that zone might not feel as good once the clawback kicks in.
Student loans. Higher salary = higher repayments. On Plan 2, you're repaying 9% of everything over £27,295 [5]. A £5k raise means roughly £450 more going to your loan each year.
Benefits add up
Don't just accept "competitive benefits" at face value. These things can be worth £2-10k+ a year:
Private health insurance (£1-2k if you bought it yourself)
Life insurance and income protection
Enhanced parental leave (statutory is pretty rubbish)
Extra annual leave (5 extra days = roughly 2% of your salary)
Training budgets, gym memberships, travel subsidies
Ask for specifics. Ask what each benefit's actually worth. Then factor it into your comparison.
Practical stuff
Mind the gap. When's your last payday at the old place? When's your first at the new one? Could be 4-6 weeks with no money coming in.
New costs. Different commute? Need new work clothes? Factor it in.
Mortgage timing. Planning to buy? Lenders usually want 3-6 months in your new role, and probation periods can complicate things. Sometimes it's worth getting the mortgage sorted before switching.
Your old pension pots
And one more thing that catches people out: every job change leaves behind a pension pot.
After a few moves, you've got money scattered across multiple providers, different fee structures, funds you didn't choose.
Those pots aren't just messy - they're often being quietly eaten by fees you don't know about. And they're surprisingly easy to lose track of entirely. There's over £31 billion sitting in lost UK pensions right now - that's 3.3 million pots with no owner in sight [6].
When you change jobs, add "sort out old pensions" to the list. Not glamorous, but your future self will thank you.
Quick checklist
Before you accept:
Total compensation, not just salary?
Pension contribution - and any waiting period?
Benefits - what's actually included and what's it worth?
Any tax thresholds you'll cross?
Bonus or equity you'd forfeit by leaving now?
Practical bits:
Gap between paydays?
Mortgage plans that might be affected?
Old pension pots to consolidate?
The bottom line
Job changes can be great. Often they're the best move you can make. Just don't get so excited about the salary number that you miss the bigger picture.
The people who build real wealth aren't always the ones with the highest salaries - they're the ones paying attention to the whole package.
References
The qualifying earnings band for 2025/26 is £6,240 to £50,270. Source: GOV.UK - Review of Automatic Enrolment Earnings Trigger and Qualifying Earnings Band 2025/26
Emergency tax codes explained. Source: GOV.UK - Tax codes
The higher rate tax threshold is £50,270 for 2025/26. Source: GOV.UK - Income Tax rates and Personal Allowances
The High Income Child Benefit Charge threshold increased to £60,000 from April 2024, with full withdrawal at £80,000. Source: GOV.UK - High Income Child Benefit Charge
The Plan 2 student loan repayment threshold is £28,470 for 2025/26. Source: GOV.UK - Repaying your student loan
£31.1 billion in lost pension pots across 3.3 million accounts. Source: Pensions Policy Institute - Lost Pensions 2024, October 2024
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Disclaimer:
This article is for general information and education purposes only. It doesn't constitute personal financial advice and doesn't take into account your individual circumstances. If you're unsure about any financial decisions, we'd recommend speaking to a qualified financial adviser.
