In the money? Women reach ‘peak earnings’ aged 40

If you’re a woman over the age of 40, it’s likely that you have already reached your “peak earnings”.

This is the age women in the UK command the highest salary, while men reach their peak earnings four years later at age 44, according to a new study.

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The study from Totaljobs found that, while women start off with an average higher salary than men at age 21, as time goes on, a man’s average earnings tend to be higher than a woman’s.

In fact, by the time men and women reach their respective peak earnings, a man’s earnings will be £8,000 higher on average.

Watch: Why do we still have a gender pay gap?

The study also found that a woman’s average pay rise is £500 less than a man’s.

Jon Wilson of Totaljobs said: "An individual’s ‘peak’ is heavily influenced by a combination of factors, such as gender, region, age, education, and experience.

"Finding the balance between achieving the right salary at the right time for personal priorities can be a real challenge, and workers are often navigating salary negotiation without really knowing what is fair and what they are worth."

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These findings show the prevalence of the gender pay gap, something the government addressed back in 2017 when companies with more than 250 employees were first legally required to report their gender pay gap.

As a result of the study, Wilson has called for more transparency in the workplace.

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He added: "This is particularly important for women, who, as our data shows, are experiencing sizeable pay gaps and peak earnings faring far below that of men.

"The only way out of this longstanding issue is for businesses to truly commit to measures such as equal pay audits, transparency on pay and bonuses, and the removal of any biases that can impact an individual’s chances of a successful career path and higher wages."

Watch: How To Negotiate A Pay Rise