Midland Employees VS London Employees

The variance between the amount of time it takes employees from different regions to earn £1million is eye-opening.

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A devastating difference has been found between the amount employees earn in the Midlands and London.

Whilst a teenager beginning work in Birmingham today will earn their first £1million before they reach the age of 50, an employee of a similar age in London will have reached the seven-figure mark nine years beforehand, at 41.

A study by Prudential found a West Midlands 18-year-old beginning their career in 2016 might expect to earn £1million by the age of 48 and six months.

This remains a longer wait than their equivalents in the North-West, East of England, Scotland and the South-East.

The analysis also found London workers had the shortest wait to earning £1million, reaching the groundbreaking amount by the age of 39 and six months.

However, the wait in the West Midlands is lengthier than this yet shorter than the wait faced by employees in the North East, South West, East Midlands, Yorkshire and the Humber and Wales.

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.

“There are many different types of saving products with different levels of tax efficiency depending on your circumstance, and it should be remembered for example that the new Lifetime Isa will be another option when it becomes available in April 2017.”

 

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