If you pay attention to the news much these days, you are likely to hear a lot about income inequality. The fact that incomes at the very top have grown rapidly over the last several decades while everyone else’s have stagnated is a large drain on the economy. And brand new research suggests that your financial fate is decided earlier than most of us would expect.
For most people, incomes rise early in your career and peak around 35-40. But by the age of 25, this research suggests, we can already tell where most people will end up in terms of relative income. For example, if you are out-earning 75% of your age cohort at 25, it’s likely that’s where you will always be. On the other end, if you are being out-earned by 90% of people your age at that time, you will likely wind up in the bottom 10%.
It is scary to think that so much can be determined so early, especially in a time when its becoming more and more popular for people to take their time getting into a career out of school. For more info, click here.