Have you ever wondered if your salary stacks up? Are you earning what you're worth, or is there a significant pay gap between you and your peers? Let's explore the numbers and the average UK annual salary by age.
In 2018, UK workers experienced the lowest salary increases in Europe. However, have recent trends shifted? Fortunately, Forbes' business analysts have delved into the Office for National Statistics data to determine the UK median wage for various age groups.
This data allows you to compare your earnings to your peers and determine if your salary is competitive or falling short. It's important to note that the figures provided by Forbes represent the median wage, not the mean. High-earning individuals like investment bankers and business executives like Martin Sorrell can significantly skew the average.
Sorrell, the country's highest-paid CEO, earns the equivalent of an average UK worker's annual salary in less than 45 minutes, according to a TUC analysis from 2016. The median wage provides a more accurate representation of the average salary in your region. Unless you're part of the top 1 percent of earners, in which case, these figures are likely of little concern to you.
1. Age 18-21
Median annual salary: £22,932
As expected, 18 to 21-year-olds have the lowest median earnings in the UK due to their limited work experience. They earn an average of £441 per week. It's challenging to command top-tier wages at this early stage unless you're fortunate enough to possess exceptional athletic abilities that attract the attention of prestigious sports clubs like Chelsea.
However, the positive news is that earnings typically increase with age and experience.
2. Age 22-29
Median annual salary: £30,316
At this stage, salaries approach the overall UK average annual salary of approximately £34,000. With a few years of experience under our belts, we're still considered young and energetic, offering a fresh perspective and enthusiasm to the workplace.
Unfortunately, many people in this age group struggle to save for a home due to high living costs. The average weekly income of £583 is often insufficient to cover both essential expenses and significant savings.
3. Age 30-39
Median annual salary: £37,544
As previously mentioned, salaries generally increase with age. You can expect to earn around £722 per week in your thirties. This is particularly important if you're planning to start a family or settle down or simply want to live within a two-hour train journey of London without breaking the bank.
4. Age 40-49
Median annual salary: £40,040
While it might be a mid-life crisis for some, this age group typically earns the highest salaries in their lifetime, averaging £770 per week. It doesn't come as a surprise that many 40-something men opt for convertible sports cars.
Unfortunately, earnings tend to decline after this point, so it's advisable to enjoy this financial peak while it lasts.
5. Age 50-59
Median annual salary: £37,804
Surprisingly, 30-year-olds and 50-year-olds share a common ground in their average weekly earnings, which is approximately £720. As you can see, earnings typically decline again at this stage.
This could be attributed to younger generations perceiving older workers as outdated or simply because many individuals in this age group prioritise personal fulfilment and happiness over career advancement.
6. Age 60+
Median annual salary: £33,852
Retirement may seem like a distant dream for many, especially those who have followed the average salary trend outlined in this article. As earnings drop to £651 per week in this age group, the prospect of a comfortable retirement may seem even more elusive.
According to Forbes, myriad factors contribute to the decline in median wages after age 50. This includes increased retirement rates, part-time employment, and health issues.
Gender Pay Gap
It's crucial to acknowledge that the median annual pay for men is consistently higher than that of women across all age groups. This gender pay gap becomes particularly pronounced after the age of 30, which Forbes attributes to the fact that more women than men face career disruptions due to caregiving responsibilities, such as childcare or eldercare.
The narrowest gender pay gap is observed among 18 to 21-year-olds, where women earn £728 less annually than men on average. In contrast, the widest gap exists between 50-59 and 60+, with women earning £7,176 less per year than their male counterparts.
