When you sit down with your boss for your annual performance review at the end of the year, you may be in for a surprise: no salary increase.
More than half of American workers haven’t received a pay raise in the past 12 months, according to Bankrate.com.
Study: Older workers least likely to receive salary increases
This new study found that older workers are least likely to get a pay bump. About two-thirds (64%) of those ages 53 years and up didn’t see a recent wage increase from either a pay raise or a new job.
Overall, 38% of workers got a pay raise at their current job in the past year and 18% got a better paying job.
For those who received a salary increase from their present employer, the study found an increasing number came from promotions and new job responsibilities.
Here’s how the study respondents say they got their pay raises:
- Performance-based pay increases: 37%
- Cost-of-living increases: 27%
- Promotions and new responsibilities: 24%
- Another reason: 8%
- Don’t know: 4%
What did workers who received pay raises from their current employer have in common? They had a higher income and education level, according to the survey.
The experts at Bankrate say this study is a reminder to start saving early in your career.
“While the economy continues to improve, it’s disappointing that Americans’ wages have not,” said Bankrate.com chief financial analyst, Greg McBride, CFA. “Though younger workers are experiencing career advancement, older Americans are hampered by stagnant incomes. This makes it even more vital to start saving early, since significant wage gains become less frequent as you get older.”
Living costs will continue to rise whether you get a raise or not. Aside from searching for a new job with better pay, you can improve your financial situation by reducing your monthly expenses.
Here are a few money-saving tips to get started:
- Simple budgeting trick to save 2 full paychecks
- How I lowered my cable and internet bill 3 times this year
- These 5 lists will help you save more money
- How I use 4 bank accounts to save more money
- The easiest way to save on prescription drugs
- How I lowered my cell phone bill to $12 per month