We're going to be rich! Kind of... Teenagers will earn £1 million by age 46
An 18-year old starting their career in 2016 can expect to earn their first £1 million just after turning 46.
Prudential found, that according to projections, someone of this age on an average salary will have earned a total of £1 million during their working life by 2044 - at the age of 46 years and one month.
Using earnings figures from the Office for National Statistics, Prudential estimated an 18-year-old would be earning £10,361 in 2016, building up to a typical wage of £51,679 in 2044, when they are aged 46.
Don't get too excited - it's because of inflation. The analysis assumes that future average wage inflation will mirror average pay increases seen between 2006 and 2015.
Sounds good right? Well, not if you’re Welsh. Across the country, workers in London will reach their million pound milestone aged just 39, while if you’re working in Wales, you’ll reach it when you’re aged 50.
Vince Smith-Hughes, a retirement income expert at Prudential, said: “For many people it can be surprising just how much a lifetime of earnings can add up to.
“With many people now working until later in life, someone earning the projected average salary over their career can expect to earn a total of over £2 million in their lifetime.
“With this in mind, the approach of saving as much as possible as early as possible in life is the most likely way for most people to be able to secure a comfortable income in retirement.
“Workers who have the opportunity to contribute to a workplace pension scheme will benefit from employer contributions as well as making a dent in the more than £200,000 they would have to pay the tax man on their first earned million.”
Here are the average ages at which an 18-year-old worker will reach £1 million in earnings by region, according to analysis by Prudential:
- London, 39 years, six months
- South East, 45 years, six months
- Scotland, 47 years, three months
- East of England, 47 years, eight months
- North West, 48 years, four months
- West Midlands, 48 years, six months
- North East, 48 years, eight months
- South West, 48 years, 11 months
- East Midlands, 49 years, one month
- Yorkshire and the Humber, 49 years, three months
- Wales, 50 years