Financial problems `hit the over 40s`

Earnings for workers generally level out once an employee reaches the age of 40, a new study has revealed.

Those banking on a late payday to boost retirement savings could be in for a shock, as research by Fool found that wage rises flattened out at an average pay packet of £35,000 once a worker turns 40.

Debt problems for those in middle age may not go away easily, as for 65 per cent of 40 year olds, they will not have another wage increase - if inflation is taken out of the equation.

David Kuo, head of personal finance at Fool, said: "We all like to think that milestone birthdays lead to exciting turning points in our lives. But it seems we shouldn`t get too ecstatic about life beginning afresh and full of bounty when we hit 40."