It depends what you intend to do with that money though. For example, if I can put an extra 100k into a retirement fund or investments over the next 5 years the

It depends what you intend to do with that money though. For example, if I can put an extra 100k into a retirement fund or investments over the next 5 years then that is an incentive to go for the 20% raise. I say this because I am currently in that situation. I am about to accept an offer for a substantial raise. I own a nice new car and have a big home. I could decrease those expenses and put more into retirement or I can continue with my current standard of living and put more money into retirement by accepting the offer. In the end, depending on what your financials are like, that 20% raise could mean the difference between retiring at 67 or retiring at 60...or before that. It's all relative right?