Age does matter when it comes to salary and that means the highest salaries are usually given to a particular age group. As an adult, your financial situation is constantly evolving, the same as your personal life and happiness. Just like your state of mind, your finances will fluctuate according to a number of variables.

To analyze which are your best financial years, we have compiled an analysis of what to expect in terms of salary for your most important years. When you are younger, you probably think that you will make more money when you are older. Of course, job seniority does come with promotions and raises, but as it turns out, that is not necessarily how life works out even if you think it should.


According to analysis and research conducted by, women's salaries usually peak at age 39-40 when on average they start making around $60,000. After that, there are usually plenty of bumps up in their salaries that rarely outpace the inflation rates. That probably doesn’t sound too bad, but based on the data they collected on men, men's salaries continue to grow until they reach 48 years and get their highest salaries of around $95,000.

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A Breakdown Of Which Age Group Earns The Highest Salaries

Age: 25 years

At this age, you probably spent money that you probably did not have, and did not feel an ounce of guilt about it. But 20 years later, this will come back to bite you. The average American 20-something-year-old has an average income of around $31,000 and an annual spending average of about $33,000. This likely means the average person in this age group is likely in debt and requiring financial help from good ol' mom and pop.

Living beyond your means is a bad financial habit and one that can take years to correct. Of course, student loans are pretty easy to get and just having to pay those back in your twenties will add more to your monthly outgoings. And all of that makes the twenties some of your most shaky financial years.

Age: 30 years

At this age, most people start waking up from their drunken stupor and their college partying ways. They now decide to start being serious. At this point, the average 30-something American is probably making more than $40,000 a month. Spending habits usually change in these years, with less spending happening and at least an attempt at more savings.


Age: 40 years

At 40 years, the average person starts thinking about buying a home. Purchasing a home would cost more than $200,000 according to the Zillow Group housing report. 42% of all home buyers are usually part of the millennial generation and between the ages of 18-37. Most of them are probably not doing it alone, and they are probably not doing it alone. Their average earnings are around $87,500.

Age: 40 Women

At 40 years, women start making the most amount of money in their careers. Their salary growth outpaces men up until they reach 30 years. This is because women start having kids at 30. They then slow down considerably over the next few years, and according to further research by PayScale, college-educated women tend to hit their highest salaries at around 40 and they typically can make around $60,000. The most common jobs that these women take are nursing, HR managers, and elementary school, teachers.

Age: 49

At this age, men make the most money from their careers. College-educated men experience a pay growth for a decade longer than women and this peaks at 49 and have a typical salary of around $90,000. The most common jobs for American men are software development, computer systems administrators and project managers.

Age: 59

At this age, most people have around $1 million in their savings accounts. If you have been a dedicated saver since your early years, then you can achieve this. Women on average will reach this milestone at 58 years, while men do so at 59, which goes to show that women save more than men.

The typical 401 (k) millionaire is either an American woman with an average annual income of $287,000 for an American man with an average income of $354,000.  You, however, do not have to be a high earner to become a 401(k) millionaire according to Fidelity, which found that consistently saving and investing were the main ways of reaching your millionaire status.

Age: 65-70

At this age, your net worth is at the highest it has ever been. This started as soon as you turned 60 and started your journey towards retirement. Wallet Hack's review showed that the average median net worth, which included their home equity was around $194,226, which isn’t very impressive.

To avoid depleting your account, the maximum amount you should be withdrawing each year from your retirement account should be around 4%.

Which Age Group Brings In The Highest Salaries
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Which Age Group Has The highest Salaries Conclusion

Unfortunately for most people, they start to think about their finances at the age of 30, which in most cases is usually too late. By the times the mid-thirties hit, people in a financial hole will find it even more difficult to get out. And getting into the forties is when average salaries peak too, so it gets harder to catch up on debt. Regardless of your age group, the best thing is to keep that debt low and invest your income so it can work for you. When you've got your own little plant of money growing, you don't have to worry about which age group has the highest salaries.