City high-flyers 'finished at 50'

The City's top ten careers have an average wage packet of £534,400 a year – but they are set to end their careers at 50.

Research by Route City Wealth Club shows traders head the top earners list with average annual income of £1.4 million, behind general finance and legal at £1.0 million and £573,000 respectively.

Performance-related bonuses were a significant percentage of annual income for the top three highest paid careers with them accounting for 82 per cent (traders), 70 per cent (general finance) and 37 per cent (legal).

Next on the list of top earners stood recruitment (£477,500), insurance (£388,500) and management consultancy (£379,200).

Over their whole careers, the City's elite will earn £8.89 million – with traders taking in £22.2 million.

However, high pay comes with high pressure and on average City workers call it a day at 50.

Mark Worrall, Route managing director, said: “Many of our members work in intensely pressurised careers that have a relatively short life span with only 20 ‘peak earning years’ and are very focused on performance related bonuses.

"So while they have the opportunity to earn more than half a million a year, this part of their working life generally doesn’t last very long. Most are facing 'retirement' at 45 to 50, thus it is vital that they manage the income from their hard work well."

The research also uncovered when the City's top earners were earning most in their careers.

In general finance, the income peak happened between 30 and 35 – taking home £1.1 million. While those in trading, recruitment and management consultancy had to wait until their early 40s.

The Route has now issued a few tips for high worth net individuals – and us all – to make the most of their cash:

• Maximise tax allowances such as ISA investment and pensions as well as using tax efficient vehicles such as Venture Capital Trusts and Enterprise Investment Scheme to reduce their tax burden.
• Spread risk across sectors to balance a portfolio.
• Set achievable financial goals that will in turn help to achieve overall life goals – be it retiring at 50 or retraining as a teacher.
• Update financial goals as your life develops and changes with events such as marriage, children, divorce or death of a parent.
• Take steps to guard against the impact of redundancy, such as paying off debt and making sure some capital is kept in an easy to access account.