Women hit their earnings peak 10 years before men
HMRC’s Personal Incomes statistics, covering 2016-17, show that median female income across the UK peaked at £24,300 between the ages of 35 and 39. This compares to £32,300 for men between the ages of 45 and 49.
The figures also revealed that male taxpayers in every age range had a higher median income, comprising of profit, employment, pension income plus property, interest, dividend and other forms of income. Across all ranges, median income totalled £26,100 for men and £20,800 for women.
Helen Morrissey, pensions specialist at insurer Royal London, said the figures underscore that women must do everything they can to get ahead of the curve by saving into a pension as early as possible.
“There are many reasons why women hit this point earlier than men, for instance the rise in part-time working among women after this point as they take on caring responsibilities.
“By starting saving into a pension early we can ensure that women take full advantage of the employer contributions, tax relief and investment performance which will help them build a sustainable base for their future retirement planning,” she explained.