Your Money: At what age do Kiwi workers earn the most?

Kiwis aged 40 to 44 had the highest average weekly income last year. Photo / Getty

It's good news if you're in your 30s but not so good if you're over 50.

New Zealand workers reach the peak of their earnings power in their early 40s according to earnings data from Statistics New Zealand.

Those aged 40 to 44 had the highest average annual income last year at just under $41,000.

But those over 55 saw a significant dip in their income and by age 60 it falls below what you earned in your mid to late 20s - a time when many start their first serious job.

Roman Rogers, executive general manager at Hudson New Zealand, says the numbers stack up with what he sees in recruitment here and internationally.

"It is consistent with other studies around the world."

Rogers says the reason we peak in our 40s comes down to what we do in our career in our 20s and 30s.

"If we hit our 30s and develop a specialist skill, when we start to hone that over the next 10 to 15 years we start to benefit from that uniqueness."

Rogers says people tend to make relatively large steps in their careers in their 30s and because New Zealand businesses don't have many management levels and people are able to step up the ladder and pay levels faster.

"In their 30s and 40s people tend to be more strategic. But that depends on them finding their uniqueness in their 20s and 30s."

Rogers says the reason for the drop down in income in mid to late 50s can be more about what is happening outside of the workplace.

"It might be the kids have grown up and need more support or because of ageing parents."

That causes people to make decisions on how they trade off their time.

"It can cause tension. There's no doubt the 40s and 50s should be the time when you maximise your earnings but life gets in the way and people have to make trade-offs."

Another issue in people's 50s is that their pay may only increase by a small percentage barely keeping pace with inflation.

Rogers says those in their 20s are much more likely to see bigger increases.

The wage peak is also an issue for women wanting to have a family.

Rogers says that can mean a woman's pay peaks earlier than a mans and may never recover if her career takes a back seat to looking after the family.

"It's really difficult to go through that process and keep connected with a career path."

But he says some businesses like Westpac are making an effort to help support women coming back into the workforce after having a family.

Rogers says people in their 40s need to hunker down and make the most of their earnings potential over that 10 year period.

"What you want is to love what you are doing and be good at it so you can make the most of it."

Many people are then choosing to pull back on their career in their 50s.

"It's not about people being paid less but wanting to work less."

Rogers says there is a growing movement in that age-group to focus on work life balance.

"They've seen the generation before them that have worked really hard and retired only to have health problems. I think there is a realisation that people don't want to be working for all that time and never have a chance to enjoy life. And they can do that if the make wise career steps in their 20s and 30s."

Rogers says better awareness of retirement planning and money is allowing people to have more choices in their 50s.

It's a trend which financial planner Simon Hassan has also noticed.

Twenty years ago people came to him wanting to retire in their 60s and only began to think about saving for their retirement 10 years before then.

Now he is seeing a lot of people in their 30s and 40s wanting to put money aside and trying to figure out a plan to ease out of day to day working.

"It's down to gradually rising financial resources. They are a bit more educated and because of KiwiSaver."

Hassan says the 40s earnings peak is a good reminder for people not to leave their savings run too late.

Top five ways to stretch your earnings potential

*develop a specialisation and good base knowledge by the time you are 30

*think about your career path - align your choice of roles with where the business generates revenue

*if you are woman consider working in a male-dominated field where the wage gap between men and women tends to be smaller

*keep abreast of what is happening in your industry while in your 30s and ensure you are being paid fairly for the role you do

*avoid changing careers in your 40s. Now is the time to hunker down and make the most of your earnings potential between your early 40s and early 50s.