Ages for wages: Study reveals when workers reach their earning peak

Based on a survey, wages peak between the age of 40-49.

14:04 04 August 2014

New statistics have revealed that most professionals reach the peak of their earning power between the age of 40-49. It added that salaries fall to their lowest level during their 50s. 

 

ONS data analysed by pension and retirement specialist Friends Life suggests that workers aged 40-49 will see their wage peak to an average of £33,459. The salary is then expected to fall by they time they hit 50. By 60, the average income will drop by an additional 6per cent to £31,052.

 

Colin Williams, managing director of corporate benefits at Friends Life, said: ‘Our analysis shows that most people will reach their earning peak earlier in their career than they may think.”  

 

‘Then they will see a fall during their 50s, just at the point that spending increases and people will be relying on savings for retirement.

 

‘This highlights how important it is to take action when your saving potential is at its highest during the early part of your working life, particularly to avoid having to use pension savings to pay off any remaining debt.'