A study of 200 million Social Security records showed Americans stop getting raises once they hit their 40s. While it’s great to continue receiving a peak salary every year, workers often forget to account for the rising inflation that will ultimately lower their income.
Workers from 50 to 60 years old have a higher risk of experiencing a “negative income shock” (getting fired and having to take a lesser-paying job), says Teresa Ghilarducci, writer for The Atlantic. There is one exception. Those workers at the top of the income distribution will usually continue to see large increases in their earnings until retirement. For those not so lucky, personal finance experts suggest saving money, not overspending and don’t take out big loans.
— Adapted from “At What Age Do Workers Stop Getting Raises,” Teresa Ghilarducci, The Atlantic.