Revealed: the 30-year economic betrayal dragging down Generation Y’s income

Bit of a victim complex you've got there?

x.

So in summary: Our generation is paying the cost of the baby boomers' pensions (our (parents/grandparents)....and that is the #1 cause why our generation is going to be much worse off than the previous generations.

i love articles like this. Most of our generation today has no idea how f***ed they are going to be 20 years from now. I'm enjoying my 20 year head start.

Generation Y is roughly our generation (born between late 1980s and 2000)

http://www.theguardian.com/world/2016/mar/07/revealed-30-year-economic-betrayal-dragging-down-generation-y-income

Tl;dr:

-Pensioners have seen higher disposable income growth than young people in almost every wealthy country over the last few decades
-Prosperity has plummeted for young adults in the rich world. In the US, under-30s are now poorer than retired people. In the UK, pensioner disposable income has grown three times as fast as the income of young people.
-Millennials have suffered wage losses in the US, Italy, France, Spain, Germany and Canada, and in some countries this was underway even before the 2008 financial crisis.
-In the US, France, Germany, Italy and Canada the average disposable income of people in their early 20s is more than 20% below national averages
-In France, recent pensioners had more disposable income than families headed by a person under 50. In Italy the average under-35 became poorer than average pensioners under 80. In the US in 2013, average under-30s had less income than those aged 65-79
-In the US, young people sit on $1.3tn of student debt
-The numbers of thirtysomethings living with their parents is very high in countries such as Italy and Spain, with grave implications for birthrates and family formation in places whose demographics are already badly skewed towards elderly people
-By 2041 it is estimated that 1/3rd of UK will be over 65 years old, and higher across most of Europe; pensions are becoming an ever larger drain on budgets in the West - in the UK, for example, pensions are guaranteed to rise by at least inflation

There's been a slow erosion of things that the previous generation took for granted.
Student grants? Gone. Affordable mortgages? Gone. Final salary pensions? Gone. Early retirement? Gone.

I'm Gen X myself. Not many of us looking forward to final salary pensions or early retirement either. The Boomers ate all the pies. Greedy ****ers.

I wouldn't say they've eaten all the pies, but their generation certainly set the precedent - each generation will now leach off future generations, in the largest Ponzi scheme ever devised

Of course, we really shouldn't feel entitled to these goodies; but its only natural to expect the same as your parents receive, and its going to be a nasty shock for younger generations. This generation expects a certain standard of living; until that standard is met, they'll borrow in the fallacious expectation that things will inevitably improve, delay buying houses, starting families, further decreasing the birth rate, won't invest in the future (why subsidise the future when you are struggling financially yourself?), and ultimately leaving themselves to be a huge drain on the (much smaller) next generation or two.

I would happily see generation Y completely screwed over, if the following generations were saved from this cycle of decay

Pretty much agree. It's a definite Ponzi scheme.

I think that generations going forward are going to have to get used to the idea of being poorer than their parents.

No they don't

One generation just has to 'man up' and take a hit to their own lifestyle, to break the cycle

Exactly the same is happening with global warming - continuing the consumerist gluttony > safe-guarding humanity's future, no generation is willing to take a significant cut to their comfy lifestyles, instead they kick the can further and further down the road

There's been a slow erosion of things that the previous generation took for granted.
Student grants? Gone. Affordable mortgages? Gone. Final salary pensions? Gone. Early retirement? Gone.

Generation Y is roughly our generation (born between late 1980s and 2000)

http://www.theguardian.com/world/2016/mar/07/revealed-30-year-economic-betrayal-dragging-down-generation-y-income

Tl;dr:

-Pensioners have seen higher disposable income growth than young people in almost every wealthy country over the last few decades
-Prosperity has plummeted for young adults in the rich world. In the US, under-30s are now poorer than retired people. In the UK, pensioner disposable income has grown three times as fast as the income of young people.
-Millennials have suffered wage losses in the US, Italy, France, Spain, Germany and Canada, and in some countries this was underway even before the 2008 financial crisis.
-In the US, France, Germany, Italy and Canada the average disposable income of people in their early 20s is more than 20% below national averages
-In France, recent pensioners had more disposable income than families headed by a person under 50. In Italy the average under-35 became poorer than average pensioners under 80. In the US in 2013, average under-30s had less income than those aged 65-79
-In the US, young people sit on $1.3tn of student debt
-The numbers of thirtysomethings living with their parents is very high in countries such as Italy and Spain, with grave implications for birthrates and family formation in places whose demographics are already badly skewed towards elderly people
-By 2041 it is estimated that 1/3rd of UK will be over 65 years old, and higher across most of Europe; pensions are becoming an ever larger drain on budgets in the West - in the UK, for example, pensions are guaranteed to rise by at least inflation

There's been a slow erosion of things that the previous generation took for granted.
Student grants? Gone. Affordable mortgages? Gone. Final salary pensions? Gone. Early retirement? Gone.

Partly this is about pensions and partly this is about a broken housing market where the supply just has not been allowed to keep pace with the demand - largely because of vested interests lobbying against changes to planning and tax laws.

At first this basically just entrenches inequality - yes the older generation have more than the younger generation, but through inheritance you find that the older generation that own property pass their inheritance down to the younger generation and this creates a big divide. You see this now amongst young people in their 20s, amongst my friendship groups I can see a large divide in standard of living between some early to mid 20 somethings who have got houses and are fairly positive about the future and those who are stuck renting and unable to save for a deposit because their rent increases every year and is hoovering up most of their income.

The difference between the two groups is parental help.

So at first this debate has some young people despairing about their future and others taking the I'm alright Jack approach and saying well boohoo nobody owes you a living how about stop spending money on iphones and games consoles and start saving, its always been a challenge getting a house etc.

But what starts to happen over time, is the children of Middle England are being disenfranchised and even their comfortably off parents cannot do anything about it. OK they might have a house that's worth a lot but if they have three kids who they have had to fund through school and university, they don't have the means to raise the large sums needed for London deposits for all three of their children. And these are the ones who will really notice the difference in living standards between the generations as the parents will look at their children and think, they are doing the same kind of thing as us, went to good unis, got good professional jobs, and now they are living in house shares and perma-renters. Also as people are living longer the costs of social care eat up these inheritances so just because your parents have a house worth £750k-£800k, if they are in nursing homes for a number of years the house will have to be sold to pay for their care so the inheritance disappears.

We have a major problem unless policy makers really tackle the housing market but the difficulty will be that to enable young people to have affordable housing it will mean prices have to come down and that will mean that a lot of property owners who were banking on a one way bet with their property a constantly appreciating asset, will have to confront the unconfrontable which is that their house price will fall.

It does concern me about getting on the property ladder - that at SOME point there will be a tipping point where action will need to be taken, and those who got on the property bandwagon too late will be the ones who bought at the top of a market that may then move in the opposite direction.

Work this one out you have to save 800 a month in a pension from the age of 22 to receive the average private pension today.

That's with the average house price ten times that of the average wage and rapidly increasing.

Massive competition for jobs because of immigrants.

The devaluation of degrees because of stupid amounts of people being allowed to do them even with poor grades.

Much higher consumable bills than the boomers with regards to fuel, food etc

Basically you are ****ed and the generation as a whole hasn't even worked that out.


Oh yea enjoy working 10 years longer too.

Thanks


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