Britain’s forty-something-year-olds are in the sweet spot of working adults

Younger workers are struggling with lower wages and higher rents. Over-50s are leaving the workforce in large numbers. However, the UK seems to be a great place to work in your 40s, writes Elena Siniscalko.

The government began to look at tax breaks for people over 50 who want a return to work last week. Predictably, she started a Twitter war with under-35s lamenting high student debt, exorbitant rent and low salaries — with no one offering them a tax break. Apart from the stereotypical conflict between young workers over 50 who “eat avocado” and those who “stuck their ways”, it’s clear both age groups are unhappy with what they get in the labor market.

If you ask someone what the best age to work is in the UK, they will most likely reply “I’m not my own age right now.” Both young and old workers face the same problems. The only group that seems to be in a good place is the compact one: those in their 40s.

Think young people first. It’s not easy to get into the workforce today. There are many jobs available, so it is true that there are high levels of vacancies. But this does not mean Gen Z is able to perform these jobs. There is a mismatch in the skills needed for many jobs and what we learned in school.

Young people have lower salaries but higher expenses. Data from last summer showed that four out ten people aged under 30 spend more than 30% of their income on rent. London has the highest rent prices in America, according to statistics. Generate Rent is unable to put money on the side for real estate.

The cost of childcare and their income is a concern for those over 50. It is three times more expensive than what couples in Germany spend on childcare. This has profound social and cultural implications: if previously people made life decisions — such as when to have a child — based on age, now they make them on the basis of salary. According to Evelyn Partners, wealth manager Evelyn Partners research shows that 58% of Gen Z and 57% of millennials want to achieve a certain income level before making such decisions.

Older workers are not in the best of circumstances. According to ONS data, nearly 16% of people 50-54 years old were economically inactive during the year April 2021-2022. 24 percent of 55-59 year olds were economically inactive. There are many reasons why this happens: long-term illness, disabilities that make it difficult for people to find work, and caring responsibilities.

Millions of people have fled the job market since the pandemic. At the end of last Year, there were approximately 88,000 more Londoners aged 50-64 than at the beginning of 2020. Many are unable to re-enter the market due to a lack flexible opportunities. Dr. Adrian Wright from the University of Central Lancashire says that many people cannot return to their jobs if they are out of work. This productivity problem is the reason why incentives are being considered for this age group by the government.

Take a look at those in their forties. The highest-earning full-time workers in the UK last year were men between 40 and 49 years old. The average weekly wage for employees in their 40s was the highest at £727, compared with £678 for those aged 30 to 39 and £681 for those aged 50 to 59. To purchase one before the housing crisis reaches its current peak. They are likely in high-ranking senior positions. According to an EY report, there are no directors below 40 in any of the UK’s biggest financial services companies. Being over 40 doesn’t automatically mean you’ll get a senior job—the average age of a board member was 58—but if you’re younger, you’re almost guaranteed not to get hired. While millennials in the 30s have lower incomes compared to previous generations, those in their 40s will be more likely save for a nice early retirement.

This image is problematic for many reasons. Young workers are more likely to end up in debt than they were a few years ago and to struggle to make ends meet. Those in their 30s may forgo desirable life opportunities because they don’t earn enough—accelerating the rise of an aging society. People in their fifties will feel less remembered if they quit work to care for their family or their health. Although things are great for those in their 40s it is unlikely that the UK will solve all its social and economic problems until there is better employment for everyone.