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Peak earning years refers to the time in life when workers earn the most money per year.


US perspective

Given their initial lack of
experience Experience refers to conscious events in general, more specifically to perceptions, or to the practical knowledge and familiarity that is produced by these conscious processes. Understood as a conscious event in the widest sense, experience involv ...
, workers' earnings start out low.
Earnings Earnings are the net benefits of a corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT (earnings before inter ...
peak when workers hit
middle age In the history of Europe, the Middle Ages or medieval period lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history. It began with the fall of the Western Roman Empire a ...
, then begin to fall as
retirement Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their j ...
approaches. But peak earnings now occur later in life and reach a higher level. In the 1970s the peak earning years were between 35 and 44 for people with only an elementary school education. However people who graduated from high school and college had a peak income between 45 and 54. In 2009 peak income occurred between the ages of 40–55. Twenty years ago, those in their peak earning years took home about twice as much as workers between the ages of 20 and 24. Now they earn more than three times as much.


References


External links


OnWallStreet.com: "Advisors with Financial Planning Expertise Earn More, Survey Finds"

Generational Advisor
Wages and salaries Recruitment {{econ-stub