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People say wages must double to preserve lifestyle

Most people believe they will need to double their income over the next 10 years to maintain their current lifestyle, according to research from fund company Insight Investment.

Asked by the HBOS-owned fund firm to estimate the salary they will need in a decade, the average amount suggested by 72 per cent of respondents was £45,729, almost double the current average salary of £23,607.

The remainder did not know what income they would need.

Twenty-three per cent of people estimated that they would need to earn at least £50,000 while 14 per cent thought they could survive on between £25,000 to £30,000, which Insight says is a more likely level for the average wage in 10 years time.

The company says factors such as a decade of surging house prices, rampant consumer spending and a range of financial pressures have raised expectations of what salary levels will be needed to survive in the future.

People in their 20s lead the way in terms of salary expectations, with 47 per cent saying they will need to earn over £50,000 in 10 years compared with 30 per cent of those in their 30s and 40s. The research was conducted among 1,000 respondents in February.

Retail managing director David Norman says: “Many people are living in a financial dream world.

“Salary expectations reflect the increasing financial pressures upon people today but the average wage in 10 years is likely to be nowhere near the £45,000 people say they will require to live in comfort and save for their future.”

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