Everyone must be interested in at least their own earnings, and that’s why I wanted to write a post about the highest income earning years. Determining that isn’t simple because there are so many variables that affect it. However, after some research I was able to find some average results about the subject.
According to Daily Mail in the UK women’s earnings typically peak at the age of 34, but for men the age is closer to 50. What this basically means, is that men’s salaries keep on rising about 15 years longer than women’s.
UK Wages Over the Past Four Decades reported that on average women earned around £13.19 (15 euros) per hour at their highest. The figures also revealed that the difference between men’s and women’s salaries are actually close to zero until the age of 30. This means that there’s not a big gender pay gap in the beginning of a work life in Britain. The report shows that when men reach their earning peak, the salary appears to be around £15,54 (17,67 euros) per hour. I’m wondering, why does the salary stop rising for women earlier?
The studies are saying that this might be because women often stay out of work for a few years to have children, and when they return they continue as part-time employees. So then why not comparing men with women who decide not to start a family and stay at work instead? I guess it wouldn’t bring us any more accurate results because no matter how random the group of women we pick, there’s always going to be a part that wants to have children, and that doesn’t really change the average statistic results.
Instead, when I compared the statistics in Finland, Yle News stated the fact that men are getting paid a little bit more already at a younger age. After the age of 25 male salaries are starting to rise more rapidly than female. Each gender will reach their earning peaks at the age of 45, but the one big difference is that men are getting almost 1000 euros more a month for the rest of their working life.
In my opinion I like the Finnish salary scale better even though the gap between men and women is deeper at the beginning, I think besides that it’s also more motivational in a way. Me as a woman if I reach my high-earning years at the age of 34, what makes me want to educate more, learn more and do more/better at my job after that? I think constantly rising salary motivates you to do better in the competitive business life. Anyhow, the earning peak of my future career won’t come anytime soon no matter what country I live in, so I’ll just have to work hard in the meantime. What do you readers think about the systems, is one better than the other? Which one would you prefer to have in your country?
MoneyPlus Features Team, 2016. When are we at our earning peak. Standard Life. Updated 26.4.2016 http://www.standardlife.co.uk/c1/news-and-blog/when-are-we-at-our-earning-peak/# Read 6.10.2016
Rautio, Marjatta 2016. Naisen palkka liukuu alamäkeen viimeistään viisikymppisenä – miehen tilipussi tonnia lihavampi. Yle uutiset. Updated 7.3.2016 http://yle.fi/uutiset/3-8415118 Read 6.10.2016
Norton, Jim 2014. Women’s earnings peak at 34, but for men it’s 50: Difference due to women returning to work part-time after having children. Daily Mail online. Updated 4.7.2014. http://www.dailymail.co.uk/news/article-2680189/Womens-earnings-peak-34-men-50-Difference-women-returning-work-time-having-children.html Read 6.10.2016
Truc, Henry 2010. Preparing For Your Peak Income Years. Financial Highway. https://financialhighway.com/preparing-for-your-peak-income-years/ Read 6.10.2016