MONEY MATTERS

We all assume that, as we progress in our world of work, our earning power will rise with us. But research suggests that we reach our financial peak at 40.

Average earnings increase fairly rapidly in our late twenties. In our thirties our income accelerates and between 40 – 55, average earnings remain stable. After 55 they start to go down. Men fare slightly better than women. But income for both sexes declines at a similar speed.

These findings are food for thought for those, particularly in their twenties and thirties. At this age they plan for their future based on the assumption their income will continue to rise. It might not be a very good idea to allow you to build up debt in the hope of paying it later. If the salary increases fail to come about, that debt could prove a burden, particularly if your family commitments increase as you get older. These figures might also make you want to think about saving for the future.

But for some it may all prove a blessing in disguise. If you are doing a job you don’t like simply because of the expectation that if you stick it out you will gradually earn more, these statistics may make you think again. If the odds are that your income is not going to grow much, why not at least do something you enjoy?

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