Jess Commons | Deputy Editor | Wednesday, 25 May 2016

Here\\\'s What Age Teenagers Are Set To Make Their First Million By

Here's What Age Teenagers Are Set To Make Their First Million By

The Debrief: You're going to be a millionaire! Sort of.

First the good news. If you're 18 today, expect to have made ONE MILLION POUNDS by the time you're 46.

The bad news? That's accumatively.

According to a study from Prudential, someone earning the average wage will, by 2044, have earned a million. Typically, an 18-year-old is earning £10,361 today (probs below the living wage, hooray) and should build up to a typical wage of £51,679 by 2044.

Of course there's a whole bunch of variables to this. The study assumes that pay will increase in proportion to inflation the same way as it has from 2006 - 2015. Also, the average wages differ in different parts of the country. Londoners can expect to get to the £1 million mark by the time they're 39 whilst people in Wales will have to wait until they're 50.

Oh, don't forget the £238,000 in tax you'll be paying on that amount too.

The dudes at Prudential are stoked with this number. '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.' Says a guy called Vince Smith Hughes who works at Prudential as a retirement income expert.

For many people though, this number won't be achievable. Nearly 4.82 million people in the UK are paid below the living wage and 21% of the UK in 2014 earned below the average household income after housing costs.

Also, even if you do manage to reach these (admittedly OK sounding salary milestones) with the average home worth nearly nine times the average wage and with rent rising faster than inflation, what initially sounded like a lot of cash might not be able to put you in the same financial realm as your parents.

Like this? Then you might also be interested in:

5 New Milestones Millennials Can Feel Good About

The One Real Reason Why Young Women Are Most Likely To Go Bankrupt In The UK

6 Ways To Save £100 Without Even Noticing

Follow Jess on Twitter @Jess_Commons

 

Tags: Money worries