Workers' earnings 'stall in their 40s'

By Tom Farley, Thu 12 Jun 2008 - Published in Pensions

Financially speaking it would appear that life does not begin at 40, if new research is anything to go by.

Although average earnings generally accelerate while workers are in their 30s, they typically flatten out at about Ł35,000 for 16 years once people hit their 40s, according to a study by Fool.co.uk.

The company states that this withering in wages coincides with a time in life when financial obligations are likely to increase.

Around this age, about eight out of ten people own their own homes and six out of ten support dependents.

In addition, workers will seriously need to think about pensions if they have not started saving before their 40s.

David Kuo from Fool.co.uk said: "It seems we shouldn't get too ecstatic about life beginning afresh and full of bounty when we hit 40."

People are advised it is a good idea to compare money saving schemes as soon as possible to make sure they are adequately provided for during their old age.

A survey by Life Trust Insurance revealed that over half of Brits are concerned they will not manage financially if they live into their 90s.

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