Alright people, I think this thread might interest many of you. I was hoping if one could provide some input as to howmuch can one expect to retire (age 60) with if they make partner at a firm such as acc,cap,ey,pa,ibm. Lets assume one makes partner at the average age, nothing exceptional. Also lets assume they make decent investments but nothing great as in they don't benefit from a buyoant housing market or a dot com type boom.For thoes in the top strat houses, howmuch would an average partner retire with? It'd be intersting to compare these figures to IB MD's as obviously those who've gone into these revered strat houses could have easily taken the other path.

Nothing.Their wife got fed up with 40 years of consulting lifestyle and divorced them. The wife got half and the lawyers got the other half.

Jack comeon, I'm trying to gather some valuable information that would interest many people. Please don't be one of those persons who spoil the intended useage of this forum. Cheers Mate.

It's a poor question, because there's no right answer. It depends on any number of factors -- career earnings, retirement planning, spending patterns, etc.Obviously Jack's response is tongue-in-cheek, but an unmarried partner with no kids is obviously going to finish with more money than the partner with three kids and two ex-wives to support, plus a trophy wife with expensive taste.Earnings figures are out there, so it's reasonably easy to estimate how much a partner earns (anywhere from £200k - £2m per annum). Assuming he's made sensible pension contributions over the course of his career, a nest egg of several million pounds plus a continuing retirement income of about 60% final pay seems reasonable?But for every careful planner, there are ten consultants who drank their way through their earnings until they were 30, didn't seriously start saving for their pension until they were 35, and made some poor buy-to-let investments which are consuming all their earnings.It's horses for courses, mate. You can be on £30k per year and end up with millions in the bank at the end, or you can be on £200k per year and end up without a pot to piss in. It all depends on your saving attitudes and investment savoir faire.

Also making partner is exceptional in itself. For sure a high number of consultants set out with that as their goal but the proportion making partner is pretty small. Probably more die by 60 than make partner.

A revenue-generating partner at a top-tier strat house in the US (not Big 4) can expect to make $1-1.5 million per year. The good news is that assuming you started with the firm in your late 20's, you can realistically make partner by the time you're 40...which means a solid 10-20 years of making 7 figures. Assuming you're not too extravagant, I've known partners retire in their 50's with $5-10 million in the bank. The bad news is that only 1 out of every 12 associates make partner.

Beng,Thanks alot for your input. I find that figure to be on the lower side. I mean people working in Risk management and other middle office roles in finance are able to earn that much. Moreover senior executives in industry can perhaps hit those figures. I'm sure consulting means more than those figures you have stated.

Yearly figure may not be too far off. Profit per partner is in the public domain for firms like Deloitte, for example.

Am ex-KPMG Consulting (5 years in UK). Beng's figures seem pretty accurate to me, when translated to GBP. Calculator, they seemed low to you? Am afraid that they are many myths about consulting!

"Tricky, the answer provided did not match my preconceived notions of a partner's salary. I don't want the truth, I want validation of my own opinions. If you can't give me that, you're not welcome here."

Why is consulting considered so prestigous and high flying then? Or is it not? I'm not looking for an arguement just some opinion and insight. I am grateful for your input - tricky, beng and RG.

Firstly, status is a personal view not a universal truth. You can drive a flash car and think this gives you status and prestige. But don't expect everyone else to have the same view. Similarly not everyone considers consulting to have status and prestige.Secondly you are confusing status and money. The two do not always go together. The pope has status and there are lawyers that you have never heard of who are amongst the wealthiest people in the country - and nobody thinks lawyers are prestigous.

>"Why is consulting considered so prestigous and high flying then?"Well, a few reasons. I don't know where you come from, but $1-1.5m per year is a pretty hefty salary, 30 times more than the average man in the street earns. It may also be considered prestigious because it attracts some of the best and the brighest people in business.It may be considered prestigious because consultants often work at the very top of the organisational structure, spending their time with CEOs and CFOs and potentially having the ability to reshape the businesses they're working for.It could be the "jet set" lifestyle that impresses some, with lots of travel to exotic destinations seen as a real perk. (For the record, this "perk" grows old very quickly).Or it could be the notion of 'partnership' that makes it prestigious -- parnters are very much a 'chosen' few, and are owners of their own businesses.You mention that there are positions in banking where you can earn similar amounts of money. That's very much true -- bankers generally out-earn their consulting counterparts. But I would disagree that a lot of senior execs earn similar amounts -- there aren't a lot of senior execs on salaries of $1m+, and they tend to hit that earnings level later in their careers.Other careers that have similar earnings levels to consultants either tend to share the partnership business model (e.g. lawyers, accountants) or involve very specialist skills and talent (e.g. doctors).

but how many people *really* achieve 7 figure salaries in consulting? does anybody below partner level reach that level?I get the impression that loads of people are stuck on dreary 50k salaries while they sit in hotel rooms contemplating their personal lives disintegrating..

If you're just in it solely for the money, I suggest going the IB route. You can make a lot more money, but you work a LOT more hours (my B-school classmates in IB claim they work 100 hrs/wk). I chose MC because:- I enjoy solving complex and strategic problems with the highest-level execs in Global 1000 companies (the power one wields is quite intoxicating)- the prestige in working for the best name in my industry- the pay is great by any measure- typically work no more than 50-60 hrs/week- typically travel only 3-4 days/week (unless international)- vacations with my family are always free (I either fly them to where I'm working at the moment on the firm's dime, or I dig into my stockpile of miles and points. I haven't paid for airfare, hotels, and rental cars out of my own pocket in YEARS)Is MC "prestigious and high flying"? To me, it is. I love it.

The last statistic I saw noted that only 1 out of every 12 associates make it to partner level. Of course, nobody below partner level makes 7-figs. Most wash out within 2-4 years of joining. Most of those that remain wind up leaving at some point to take on senior roles in "industry". Hence, only a small number reach the pinnacle in MC.For record, an associate at a top-tier strat house makes ~$120k. Associate is defined as a fresh MBA grad with 2-6 years of pre-MBA experience. Where do you get $50k? Even if you meant GBP, it's still low. I believe associates in our London office make GBP 80k.

Peeps on the trading floor or in investment mgt don't work incredibly long hours and they are still paid more than consultants.Of course, the risk element of these (banking) jobs is greater.....

Consultants don't earn as much as people think.... but it can be a long term career whereas the high earners in IB (I'm talking front office, not logistics or mid/back) tend to have short, stellar careers. Plus more pressure, and if the market hiccups, the firms go through incredible headcount reductions. MS tends to ride the waves a little more. And most people find £60K plus £10K bonus a pretty nice salary- having worked in industry, you can sit in a hotel room on £28K watching your personal life go down the drain.....

i have two questions. first of all, thank you all for the valuable input. but i was wondering, you keep talking about partner-level. i have BCG or mckinsey and the likes to serve as reference-points. lets say i'm a consultant fresh out of Bschool, top mba and all, in BCG (lets all pray for me) - the first level is consultant. then i move on to project leader, then to manager, and vice president. which one of these is the partner level? what can i expect to earn at each level if i'm hard-working and good at what i do?and also i was wondering: beng, which firm do you work for? (of course, you don't have to answer, but i was curious, seeing the god life-work balance you mentioned)

consultant £50-60kproject leader £70-95Kmanager £85-125Kvice president £120-250KPartner is probably equivalent to senior vice president, although with equity share it's not a one-to-one comparison. Earnings at this level are typically £350K+Disclaimer: I do not (and have not) worked at McKinsey. These numbers are based on my best guesses.

I've paid my dues, hope2fly. I've had my share of stupid engagement managers who think "client value" is driving their team to work 80+ hour work weeks (which is the norm in strat consulting, by the way). Fortunately, I'm way past that now. My value is measured in terms of successful engagements, and my philosophy for myself and my team is to work intelligently such that we produce the best work in the most efficient way possible. Of course, there are many 80-hr weeks, but I also have many 60-hour work weeks. As I often tell my peers and colleagues, "death marches" are the product of poor thinking, poor planning, and poor leadership. While the titles vary from firm to firm, most strat houses have 6 levels. Note that the $ figures I mention are for top-tier strat firms (my experience), NOT for Big 4, NOT for boutiques.1. Analyst, for those straight out of undergrad with no job experience. Pay ~$50-60k. Analysts are expected to be promoted to Sr. Analysts within 2 years, then leave for B-school. Yes, you are expected to leave and get a graduate degree. In you're a superior performer, the firm will often pick up your B-school tuition if you sign an agreement promising to come back when you graduate.2. Sr. Analyst, for those with a graduate degree other than MBA, such as those with PhDs or Masters in Engineering. The reason PhDs and their ilk are made Sr. Analysts vs. Associates is because they typically have no business experience, or experience outside of Academia. Pay ~$60-$90k.3. Associate or Consultant, the entry-level position for fresh MBA grads. However, note that fresh MBA grads from top b-schools typically have 4-6 years of job experience, and have typically demonstrated rapid career advancement in those 4-6 years. Pay ~$100-$120k. 4. Sr. Associate, Manager, Project Leader, etc. The next level of promotion for Associates. Top-tier strat firms are all "up or out"...if you don't make it to the next level within 2-4 years, you are basically "requested to leave". This is in order to make room for the next crop of Associates hired from B-schools. Pay ~$140-180k.5. Engagement Manager, Principal, etc. Depending on the firm, could be considered junior (non-equity) partners. These are the guys who actually run the client engagements, and are responsible for client deliverables, etc. Pay ~$180-300k.6. Partner, VP, etc. Partners are elected and are expected to generate revenue. This means that making partner is both a political and economic process. You have to generate approx. 5-10 times your pay in revenue (quota depends on the firm). Hence, if you want to make $1mm per year, you have to generate $5-10mm per year in revenues. Typical partners make somewhere between $800k to $1.5 million. From Associate, it takes 6-12 years to make it to this level...if you make it at all.

Glad to see I wasn't a million miles off, esp. when you convert $ to £!

sweet. btw, incredibly fast responses, thanks all, really, veryverymuch!!i can now go back to fantasizing...