Age and Earnings: A Look at Median Income Across Different Age Groups in Bermuda

It's a common understanding that earnings often change throughout a person's working life, typically increasing with experience and career progression before potentially plateauing or declining closer to retirement. But how does this general pattern play out specifically within the Bermuda job market? Data from the Bermuda Job Market Employment Briefs (September 2024), which analyzes findings from the 2023 Employment Survey, provides concrete figures on how median income varies across different age groups.

Understanding these age-related income trends offers valuable context for individuals at different stages of their careers, employers benchmarking compensation, and policymakers analyzing the economic well-being of various demographics. The survey captures data on all filled jobs reported by businesses, allowing the Department of Statistics to calculate median gross annual income for distinct age cohorts.

Understanding the Median Gross Income Metric

The key figure used is the median gross annual income. Calculated from the survey's count of filled jobs, the median represents the midpoint earnings level – half of job holders earn more, half earn less. This provides a more stable picture of typical earnings than an average (mean), as it's less affected by unusually high or low salaries. The term 'gross' indicates that this income is the total monetary compensation before any deductions, such as payroll tax or social insurance contributions. For context, the overall median income for all job holders in 2023 was $70,238. It's crucial to remember that these figures reflect the midpoint for all filled jobs held by people in that age group, spanning various industries, roles, skill levels, and work arrangements (like part-time or full-time).

Early Career Earnings: Under 25

Job holders under the age of 25 typically represent those in the earliest stages of their careers, often in entry-level positions, apprenticeships, or potentially balancing work with ongoing education.

• The median gross annual income for job holders under 25 in 2023 was $40,341.
• This figure represents 57% of the overall median income ($70,238), indicating earnings significantly lower than the general workforce median, as expected for this age group.
• Interestingly, this age group saw the largest percentage increase in median income compared to 2022, jumping by 11.5% from $36,168. This could suggest rising wages for entry-level positions or shifts in the types of jobs younger people held.

Career Building Years: 25 to 39

This age group typically encompasses individuals who are building their careers, gaining experience, and potentially taking on more responsibility.

• The median gross annual income for job holders aged 25 to 39 was $71,068.
• This is slightly above the overall median, at 101%, showing that by this stage, typical earnings have surpassed the general midpoint for all workers.
• The increase from 2022 was 3.4% (up from $68,699), reflecting steady income growth consistent with career development.
• This age cohort also saw significant job growth in 2023, with filled jobs rising by 3.4% (+317 positions), suggesting strong demand for workers in this demographic.

Peak Earning Years: 40 to 54

Traditionally considered the prime earning years, this cohort often represents individuals at the height of their careers, holding senior positions and possessing significant experience.

• Job holders aged 40 to 54 reported the highest median income among all age groups, at $78,414.
• This figure stands at 112% of the overall median income, clearly marking this as the peak earnings phase according to the 2023 data.
• The year-over-year increase was more modest compared to younger groups, at 1.5% (up from $77,291 in 2022), perhaps indicating stability at higher earning levels.
• While it holds the largest share of jobs (36%), the number of filled jobs in this age group remained virtually unchanged from 2022 (+0.0%, +5 jobs).

Experienced Workforce: 55 to 64

Workers in this age group possess extensive experience, though some may be transitioning towards retirement or potentially shifting roles.

• The median gross annual income for job holders aged 55 to 64 was $71,728.
• This remains comfortably above the overall median at 102%, indicating continued high earning potential based on accumulated experience.
• While still above the overall median, this figure is 8.5% lower than the peak earnings seen in the 40–54 group.
• The increase from 2022 was 1.3% (up from $70,783), similar to the peak earning group's modest growth rate.

Later Career and Senior Workers: 65 and Over

This group includes individuals working past the traditional retirement age, potentially in different capacities or work arrangements compared to their primary careers.

• The median gross annual income for job holders aged 65 and over was $54,458.
• This represents 78% of the overall median income, significantly lower than the peak earning years but still higher than the under-25 cohort. This lower median could reflect various factors, such as a higher prevalence of part-time work, different types of roles held post-primary career, or reliance on pensions supplementing work income (though the survey measures job income).
• Despite the lower median income compared to middle-aged groups, this cohort saw a solid 4.3% increase in median earnings from 2022 ($52,231).
• Furthermore, this age group experienced strong job growth, with the number of filled positions increasing by 6.3% (+165 jobs) between 2022 and 2023, indicating a growing presence of older workers in the active labour market.

The Earnings Lifecycle in Bermuda (2023)

The 2023 data clearly illustrates a typical earnings lifecycle pattern within the Bermuda job market:

• Earnings start relatively low for the Under 25 group.
• Incomes rise significantly through the 25-39 age bracket, surpassing the overall median.
• Earnings peak during the 40-54 age range.
• Incomes remain high but slightly below the peak for the 55-64 group.
• Median earnings decline for the 65+ cohort, though this group showed robust job growth and a solid income increase from the previous year.

The largest percentage income gains between 2022 and 2023 were seen at the two ends of the age spectrum: Under 25s (+11.5%) and 65+ (+4.3%).

Important Context

While age provides a clear pattern, it's crucial to remember that it's just one factor influencing earnings. Industry, occupation, education level, specific skills, hours worked, company size, and individual performance all play significant roles in determining actual compensation. These median figures provide a valuable benchmark based on age demographics but do not capture the full complexity of individual salary determination. The data reflects the midpoint earnings for jobs held by people in these age groups.

Find More Detailed Information

The data presented here is sourced from Table 3 of the Bermuda Job Market Employment Briefs (September 2024) publication.

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Disclaimer: This article summarizes median gross annual income findings by age group from the official Bermuda Job Market Employment Briefs (September 2024), based on the 2023 Employment Survey. These are median figures and individual earnings vary based on numerous factors. Always consult the official publications on the Bermuda Government website for the most complete and up-to-date employment and income data.