The average UK salary for those aged 50-59 stands at £37,804, according to recent data.
This figure places the over-50s earnings on par with those in their 30s, who earn a median of £37,544 annually.
However, this marks the beginning of a decline in earnings that continues into the 60+ age bracket, where the median salary drops to £33,852.
These figures come amidst a broader context of financial challenges for UK households. The Office for National Statistics released a report today showing that median household disposable income in the UK decreased by 2.5 per cent to £34,500 in the financial year ending 2023.
This decline affects different income groups differently, with the richest fifth experiencing a 4.9 per cent decrease in disposable income.
The peak earning years for UK workers typically fall between ages 40-49, with a median annual salary of £40,040. This equates to £770 per week, the highest across all age groups.
The decline in median wages after 50 could be due to several factors
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For those aged 50-59, earnings dip slightly to £720 per week, while workers aged 60+ see a further decrease to £651 weekly.
The decline in median wages after 50 could be due to several factors such as workers leaving the workforce, transitioning to part-time roles, or facing health issues.
The gender pay gap is also a significant concern as men consistently earn more than women across all age groups.
This disparity widens notably from age 30 onwards, which experts explain is likely due to women’s careers being more frequently disrupted by caregiving responsibilities.
The gap is smallest among 18 to 21-year-olds, where women earn £728 less annually than men on average.
However, it reaches its peak between ages 50-59 and 60+. In these brackets, women earn £7,176 less per year than their male counterparts.
This substantial difference highlights ongoing challenges in workplace equality, particularly for older women.
The salary trends for over-50s highlight broader economic challenges facing UK workers. Despite peaking in their 40s, earnings decline as people approach retirement age.
This mirrors the overall decrease in median household disposable income, which fell by 2.5 per cent to £34,500 in the last financial year.
The data underscores the importance of financial planning for later life, as income typically reduces after age 50.
It also highlights persistent gender inequalities, with the pay gap widening significantly in older age groups.
As the UK grapples with cost of living pressures, these figures provide valuable insight into the financial landscape for older workers.
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They emphasise the need for policies addressing both income inequality and the specific challenges faced by over-50s in the workforce.
Although disposable income the richest fifth decreased, the ONS data showed that median household disposable income for the poorest fifth of the population increased by 2.3 per cent to £16,400 in the last financial year.
This was partly due to government cost of living support measures. However, the richest fifth saw their disposable income fall by 4.9 per cent to £68,400, now 4.3 per cent below pre-pandemic levels.
Overall, disposable income inequality decreased from 35.5 per cent to 33.1 per cent between FYE 2022 and FYE 2023.
