Women 'must wait to 70 to earn £1m'

A man will typically have earned £1 million by the age of 51 during his working life but a woman will have to wait until her 70th birthday to do the same, according to analysis of official figures.

Everyone can earn a million - but it takes time
Everyone can earn a million - but it takes time

By the time the average worker has earned their first million they will have paid around £123,300 in tax and £93,200 in national insurance, according to Prudential, which looked at average earnings from the Office for National Statistics (ONS) to make the calculations.

The insurer calculated that a man earning the typical wage for his age throughout his career will have earned his first million before he is 51 years old. Meanwhile, a woman earning the average for her age throughout her working life will have to wait until well beyond the state pension age, to nearly six months after her 70th birthday before reaching the million pound milestone.

The analysis also found that if the average person works until the age of 65, their career earnings before tax will be £1,208,500. If they keep going until the age of 70, their earnings will hit £1,318,000 and if they battle on to 75 they will earn £1,427,500.

Despite facing an extra wait of almost 20 years to have earned £1 million, the amount of time women need to wait has fallen by nearly two years since the analysis was last carried out in 2012.

Since 2012, the average incomes for women overall have increased slightly and the average income for men in their 30s and 40s has seen a slight fall, researchers said.

When a woman starts out on her career, between the aged of 18-21, her typical wage is £8,033, whereas a man earns around £10,826. The gap widens further when men and women are aged in their 30s and are often starting a family.

A typical woman aged between 30-39 earns £23,075, while a man of the same age pulls in an average wage of £34,500.

By the time people are aged over 60, a woman will earn around £14,985 and a man's salary will be around £27,775.

Stan Russell, retirement expert at Prudential, said: "Being a millionaire is a dream for most of us, but the reality is that the average UK employee will easily earn £1 million in a lifetime of work."