Most workers have been found to reach a pick of their earning once they hit 40 years of age. According to a recent study by the Office for National Statistics, persons within the age of 40 to 49 years expected their pay to increase. The same study also found out that, the salaries fall suddenly during their 50s.
Friends Life, a pension and retirement specialist, conducted an analysis on the ONS data and found out that the majority of workers between the age of 40 to 49 years saw their wage rise to about £33, 459 in average, and fell to about £33, 059 upon hitting 50 years. In addition, by the time they are in their 60s, the average income drops by 6% to £31,052.
This indicates how critical it becomes to save more during the peak season of your life. At the same time, avoid using up your pension savings to repay any debts accumulated over time. Going by the findings by the Friends of Life, you save the least amount few years before your retirement decade since by this time, you salary has significantly reduced will your household spending go to the roof. The research also found out that, most people were more likely to be in debts during their 50s while others reported taking half of their earning to pension.