In brief...: Middle age wage woes

Jun 20 2008

People approaching middle age will be unhappy to find out that wage increases plateau once an earner hits 40, according to research.

A study by money website Fool.co.uk found that the average wage of 16 to 20-year-olds climbs from £15,000 to £17,500 until they hit their mid 20s. Earnings then accelerate throughout the 30s, but flatten out at £35,000 for 16 years once they hit 40.

Women's earnings reach their peak earlier, but plateau in the mid 30s and rarely reach the heights of £45,000 scaled by their male contemporaries.

David Kuo, head of personal finance at Fool.co.uk, said: "We all like to think that milestone birthdays lead to exciting turning points in our lives. But it seems we shouldn't get too ecstatic about life beginning afresh and full of bounty when we hit 40.

"With average consumer debt of £21,4506, and potential mortgage debt of much more, it seems those of us indelicately referred to as middle-aged should show so me of the conservatism the term implies.

"No one should ever think they are over the hill at 40, but you will have a financial mountain to climb if you haven't saved enough when you were still young and upwardly mobile."