What Age will you Earn the Most Money?

Earning a significant amount of money is an essential part of financial security. In Australia, professional employment opportunities and salaries vary according to the age group of the employees. While some professions have an upward trajectory in terms of salaries, others peak early in life, and it is crucial to understand these age brackets to plan career paths effectively.

In general, the earning capacity of a person increases with age, as they gain more experience and expertise in their chosen field. However, this does not apply to all professions, and there are some fields where the earning potential peaks early in life.

Below, we have highlighted the potential age brackets where people could earn the most in their careers, along with the options they have to increase their earning capacity.

Early career professionals (Age: 18-25 years)

The early career phase is when most people enter the workforce, either straight after completing their studies or during their tertiary education. At this stage, the focus is on gaining experience, building a professional network, and developing skills that are relevant to their chosen field.

In Australia, the average salary for people aged 18-25 years is estimated at $53,900 per year. However, this figure can vary significantly depending on the profession and even by age subcategories; an Instant Offices study from 2021 claimed that for 18-20-year-old workers, the weekly pay on average is $383.70 and 21-25-year-olds is at $1127.60. However, this study does not factor if the pay is before or after government-mandated deductions.     

Some of the highest-paying jobs for this age bracket include:

• Software developers are in high demand. With an average salary of $72,000, the job market is growing rapidly in Australia.
• Marketing coordinators can earn an average salary of $60,000 per year, and the job market for this role is expected to grow in the coming years.
• Dental assistants can earn an average salary of $55,000 per year, making it one of the highest-paying jobs for people aged 18-25 years.

To increase earning potential at this age, it is essential to focus on building skills and gaining experience. Investing in education and certifications can also help in increasing job opportunities and earning potential.

Mid-career professionals (Age: 26-45 years)

The mid-career phase is when most people have gained significant experience and skills in their chosen field. This phase is also when people are most likely to have families and other financial obligations that require a higher income.

In Australia, the average salary for people aged 26-45 years is $85,000 per year. Some of the highest-paying jobs for this age bracket include:

• IT managers can earn an average salary of $135,000 per year, making it one of the highest-paying jobs for mid-career professionals.
• Project managers can earn an average salary of $120,000 per year, and the job market for this role is expected to grow in the coming years.
• Sales managers can earn an average salary of $110,000 per year, making it one of the highest-paying jobs for people aged 26-45 years.

To increase earning potential at this age, it is essential to focus on building leadership skills, developing expertise in specific areas, and continuing education. Networking and building professional relationships can also help in opening up new opportunities and higher salaries.

Some insights recently came up with regards to wages in this age category. In discussions with The Australian, veteran columnist and demographer Bernard Salt said that based on the most recent ABS Census data, people could be at their high-water mark when it comes to earning capacity at 43 years old. He postulated that by then, many Australians are in a civil union or married and already have at least two children starting primary school.

Presuming both partners are successfully earning good incomes, they may be investing into proper detached residences. “From such a couple’s point of view it’s now or never to make the leap from minimalist (and rapidly becoming ‘kid messiest’) apartment to family friendly suburbia. Or, better still, to make the leap to the lifestyle zone located just beyond the edge of town and which has been recently activated by the Covid-inspired work-from-home movement,” sad Salt.

Late-career professionals (Age: 46-65 years)

The late-career phase is when most people have reached the peak of their earning potential. At this stage, professionals have significant experience and expertise in their chosen field and may be in leadership positions or running their own businesses.

In Australia, the average salary for people aged 46-65 years is $89,000 per year. When broken down further, Instant Offices marked the weekly for the 45-54 age bracket at $1,544.20 and over-55s at $1,373.40. Some of the highest-paying jobs for this age bracket include:

• CEOs can earn an average salary of $235,000 per year, making it one of the highest-paying jobs for late-career professionals.
• Surgeons can earn an average salary of $200,000 per year, and the job market for this role is expected to grow in the coming years.
• Lawyers can earn an average salary of $140,000 per year, making it one of the highest-paying jobs for people aged 46-65 years.

To increase earning potential at this age, it is essential to focus on developing expertise in specific areas, building a strong professional network, and continuing education. It is also crucial to keep up with industry trends and adapt to changing technologies and practices.

Increasing your earning capacity

Now that we have looked at the potential earning capacity for different age groups, let’s explore some options to increase earning potential.

Education

One of the most effective ways to increase earning potential is to invest in education and obtain relevant qualifications. This could be in the form of formal education, such as obtaining a bachelor’s or master’s degree, or through professional certifications and training programs.

In Australia, the government provides a range of financial assistance programs to support higher education, including scholarships, grants, and loans. Additionally, many employers offer education reimbursement programmes to encourage employees to continue learning and upskilling.

Skills development

Developing new skills and competencies can also help increase earning potential. This could include acquiring technical skills, such as coding or data analysis, or soft skills such as leadership or communication. These skills can help professionals take on more challenging roles and increase their value to employers.

There are various ways to develop skills, including attending workshops, taking online courses, or participating in industry events and conferences.

Experience

Experience is also a crucial factor in increasing earning potential. Professionals with a few years of experience in their field are generally more valuable to employers than entry-level employees. This is because they have gained practical knowledge and skills that can only be acquired through on-the-job experience.

To gain more experience, professionals can take on challenging assignments or projects, volunteer for additional responsibilities, or seek out opportunities to work on cross-functional teams.

Networking

Networking is a powerful tool for professionals looking to increase their earning potential. Building relationships with other professionals and industry leaders can help create new opportunities, open doors to new roles, and increase visibility in the job market.

There are various ways to build a professional network, including attending industry events, joining professional associations, and connecting with people on LinkedIn.

Earning a significant amount of money is essential for financial security, and understanding the potential earning capacity for different age groups can help professionals plan their careers effectively.

Why not streamline your bills, finance, and subscription with UMONEY — your own personal command centre from UBOMI!

If you liked our “What Age will you Earn the Most Money?” and find it useful, check our blogs regularly for more information to get updates on UBOMI’s money planner app.

DISCLAIMER:  This article is for informational purposes only. The figures listed should not be taken as official financial advice and any exact salary information may be discussed as per employer discretion. UBOMI has no relationships with any company mentioned in the article.