You may be surprised to hear this, but some people who work in banking are aged 50+. James Gorman, chief executive officer of Morgan Stanley is 62. Not long ago, Goldman had an employee who was aged 98.Who said ageism in banking is a problem when banks employ nonagenarians?
It's not quite that simple ifyou're trying to get a first job in banking. In this case, you might be inclined to disagree with the people who say banking jobs are open to all comers. Most banks restrict their recruitment within tight age ranges - especially at the junior end. If you're too old, you may need to change your strategy. Or give up.
How old is too old to apply for a firstjob?
"Most people who get entry-level jobs in banking are aged 20 to 25 years-old," says one former trader. "Once you get beyond 28 years-old, it becomes a lot more difficult to get a front office job (in trading, sales or M&A) in a bank," he adds. "Of course, there will always be exceptions, but it's tough."
One M&A headhunter, speaking on condition of anonymity, says the problem is twofold. On one hand, 30-somethings are unlikely to work the 100-hour weeks required of junior M&A bankers. On the other, 30-somethings are thought unlikely to respond well to being managed by someone younger than themselves. Research by American academic Alexandra Michel, a former banker at Goldman Sachs in New York,suggests the average age across the whole of a bank's capital markets (M&A, ECM and DCM) businesses is around 35.
M&A careers move in lockstep, says the headhunter: "You always join aged around 20-25, you do three years as an analyst, three years as an associate and three to six years as a VP." Age is therefore a marker of seniority.
Away from M&A, however, age can be less of an issue. The head of graduate recruitment at one North American bank in London says she hired a 32 year-old onto a trading graduate programin the past, although she admits that this was unusual. In most cases, markets traineeships go to 20-25 year-olds too.
The easiest place to find an entry-level finance job if you're 30+ is in operations and technology. Ex-army personnel especially are recruited into operations roles. "Non-finance experience is valued in these areas and banks appreciate that experience in other industries is helpful," says the trader.
How old is too old to use an MBA to get into banking?
How about completing a top level MBA and using it as an entry to bank's associate programmes? Even this can be tough if you're post-30, according to the M&A headhunter we spoke to (most banks focus MBA hiring on their M&A and capital markets divisions).
"You do get some first-year associates who are aged 32+, but it's very rare," he says. "In Europe, when you see someone older than that they're usually German," he adds. "They will have graduated at 26 and done something different for four years before doing an MBA. It happens, but it's not really optimal."
In the U.S., the standard path is that originally taken by ex-Goldman Sachs CEOLloyd Blankfein's sons: join a bankfirm straight after abachelor's degree, stay for two or three years and then quit to study an MBA at Harvard. Alex Blankfein started his MBA when he was around 25. Jonathan Blankfein started when he was around 24. The average Harvard MBA is aged 27.Most Wharton MBAs are aged between 25 and 31. If you're aged 30+ with a decade's experience in industry and you're applying for an associate role in banking after completing an MBA, you're going to look like an anomaly. It doesn't help that people are being made managing directors at Goldman Sachs aged just 29.
How old is too old to bother trying to get back in?
What about if you've lost your banking job and are trying to get back in again? Outplacement consultants tell us that the amount of time it takes to find a new role is almost always positively correlated to age - although this is perhaps inevitable if you're experienced and looking for a very specific senior role. Chris Carpmael,the former CFO for Credit Suisse in Europe, the Middle East and Africa, famously declared that there were very few 50 year-olds working at the Swiss bank simply because this was the "nature of the industry" - only to leave himself aged 48.
The M&A headhunter says there's no seniority cut-off for jobs in banks' advisory arms. The duration of your career and your employability aged 50 or even 60+ is dependent on one thing, he says:your contacts. "If you hit 40 and your contacts aren't good, you're going to be stuck," he says. "But if you've got good clients, you'll be hired no matter how old you are."
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FAQs
"Once you get beyond 28 years-old, it becomes a lot more difficult to get a front office job (in trading, sales or M&A) in a bank," he adds. "Of course, there will always be exceptions, but it's tough."
What age do most bankers retire? ›
Age Range: It's nearly impossible to reach this level before your early 30's, so we'll say 35-50 for the range. Few MDs continue working until the official retirement age (65-70); it's a stressful, high-pressure job, and past a certain net worth, it's just not worth it.
What is the average age of bankers? ›
There are over 141,062 bankers currently employed in the United States. 53.7% of all bankers are women, while 46.3% are men. The average banker age is 43 years old. The most common ethnicity of bankers is White (66.5%), followed by Asian (12.3%), Hispanic or Latino (11.4%) and Black or African American (5.5%).
Am I too old for finance? ›
Are You Too Old? This is a vague question, so the only reasonable answer is: “It depends.” You will not win an IB Analyst or Associate role if you're a 40- or 50-year-old accountant, but if you want to make more money while doing something related to finance or deals, there are options.
What is ageism in the finance industry? ›
Ageism in finance refers to the prejudices, stereotypes, and discrimination against people in the financial sector, specifically based on their age. This can manifest in multiple ways and can affect both older and younger people.
How much does the average person retire with in the bank? ›
The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000. Taken on their own, those numbers aren't incredibly helpful. After all, not everyone who is the same age will retire at the same time.
How long does the average person stay with a bank? ›
The average customer has stayed with their current bank or credit union an average of 14 years. The good news for banks is that once a bank has turned an inquirer into a customer, it typically forms a long term relationship.
How much do most bankers make? ›
In terms of salary, the national median salary for bankers was reported to be $67,475. Additionally, when examining job demand, employers across the country posted 130,203 job postings related to positions for bankers.
What is the average age of a bank manager? ›
Age and gender
The median age of Bank Managers and Branch Managers is 42 years. This is similar to the all jobs average of 40 years.
How old are most bank tellers? ›
Bank teller demographics research summary.
There are over 334,412 bank tellers currently employed in the United States. 75.9% of all bank tellers are women, while 24.1% are men. The average bank teller age is 38 years old.
Generally, a creditor such as a lender or broker cannot use your age to make credit decisions. However, there are exceptions to this rule. For example, age can be considered in a valid credit scoring system. Even then, the credit scoring system may not disfavor applicants 62 years old or older.
At what age do people feel financially stable? ›
Attaining financial security can be a daunting task, but it isn't unachievable. It requires a great deal of discipline, setting goals, and making sure you stick to them. If you start early enough—say, in your 20s—and follow the steps listed above, you may become financially secure by the time you reach your 30s.
How do I start over financially at 60? ›
Here are some ways to take control of your life and start over after age 60:
- Find a job. If you lost your job or are experiencing financial problems, you'll need a job. ...
- Know your full retirement age. ...
- Contribute to an IRA. ...
- Know when to withdraw from retirement accounts. ...
- Handle your finances during a divorce.
Of course, institutional, interpersonal, and self-directed ageism are not mutually-exclusive. All these forms of ageism can intersect with and compound other forms of discrimination and prejudice like ableism, classism, hom*ophobia, lookism, racism, sexism, and transphobia.
What is a major source of ageism? ›
Ageism appears to be a function of intergenerational resource tensions. That is, when younger people are expected to provide greater support for their elders, they are more biased against them. These cross-cultural findings merit greater elaboration in workplace data.
Is ageism age discrimination? ›
Ageism is defined as discrimination against older people because of negative and inaccurate stereotypes—and it's so ingrained in our culture that we often don't even notice. Most organizations now have diversity, equity, and inclusion (DEI) departments to tackle issues such as racism and gender bias.
What is the best age to retire financially? ›
The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.
What is the retirement age for JPMorgan Chase? ›
If you were born in 1957, your full retirement age is 66 and 6 months. If you were born in 1958, your full retirement age is 66 and 8 months. If you were born in 1959, your full retirement age is 66 and 10 months. If you were born in 1960, or later, your full retirement age is 67.
What percentage of 62 year olds are retired? ›
For example, between 2002-2007, 41% of U.S. adults 60-64 and 76% of U.S. adults 65-69 were retired. However, between 2016-2022, 32% of U.S. adults 60-64 and 70% of U.S. adults 65-69 were retired, according to a 2022 Gallup survey.
How much do you need in the bank to retire at 35? ›
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary.
