davieG Posted 30 September 2016 Posted 30 September 2016 People in their early 30s are half as wealthy as those now in their 40s were at the same age, a report finds. Today's 30-something generation has missed out on house price increases and better pensions, according to research by the Institute for Fiscal Studies. Those born in the early 1980s have an average wealth of £27,000 each, against the £53,000 those born in the 1970s had by the same age, said the IFS. They will also find it harder to amass wealth in the future, it added. The think tank found that people born in the early 1980s were the first post-war group not to have higher incomes in early adulthood than those born in the preceding decade. 'Sky-high' rental hotspots revealed Millennials 'set to earn less than Generation X' Young suffer as pensioners continue to prosper This generation's comparatively lower financial wealth was down to a combination of lower home-ownership rates, less access to final salary-type pension schemes, and stagnant wages, experts said. The IFS included in its definition of "wealth" property owned, financial assets like savings, and wealth held in private pensions - minus any debts a person may have such as student loans or credit cards. Simon, 32, told BBC Radio 4's Today programme rent was his single largest expense - taking up over a third of his wage - and many people his age felt they could not afford to have children. He said his sister, who is ten years older, appeared to have benefitted in a way that he had not. "There is a very sharp divide around the age of 34 or 35 - those I know 34 and younger can't afford to buy a house, whereas those 36 and older [like my sister] can," he added. The IFS said that the research "reflects the fact that the great recession hit the pay and employment of young adults the hardest".
Manwell Pablo Posted 30 September 2016 Posted 30 September 2016 Don't get how it works.....27K what's that, money in the bank? Assets? Everything you have to your name? Sorry I should actually try reading the whole article.
Wymsey Posted 30 September 2016 Posted 30 September 2016 If they offered reduced housing cost requirements for first-time buyers etc, it'd shorten the gap quite a bit.
The Horse's Mouth Posted 30 September 2016 Posted 30 September 2016 Don't think it's particularly surprising
Manwell Pablo Posted 30 September 2016 Posted 30 September 2016 4 minutes ago, Wymeswold fox said: If they offered reduced housing cost requirements for first-time buyers etc, it'd shorten the gap quite a bit. Tbf the government do quite a lot for first time buyers these days. Help to buy, 5% deposits etc. I'm pretty amazed the average 31 year old has 27k to their name though, to be quite honest. Especially as it subtracts student loans......in fact Student loans are probably a fair old portion of that as those lucky fecks got grants!
yorkie1999 Posted 30 September 2016 Posted 30 September 2016 3-4 hundred quid on pcp car purchase and 50 quid a month on mobile phone contracts doesn't exactly help the cause.
DB11 Posted 30 September 2016 Posted 30 September 2016 How is house incorporated into that?? Surely if you've got a house you've got a mortgage so how is it wealth? Unless you're telling me people in their 30s have paid off their houses in full (in which case how is it only 27k?!)
Benguin Posted 30 September 2016 Posted 30 September 2016 I'm only late twenties but based on myself and mates, it'll halve again!
Benguin Posted 30 September 2016 Posted 30 September 2016 10 minutes ago, DB11 said: How is house incorporated into that?? Surely if you've got a house you've got a mortgage so how is it wealth? Unless you're telling me people in their 30s have paid off their houses in full (in which case how is it only 27k?!) I assume its value of house minus mortgage value. I.e house valued at 150k, outstanding mortgage £123k
Bayfox Posted 30 September 2016 Posted 30 September 2016 So does the property count only if you have equity in it?
Benguin Posted 30 September 2016 Posted 30 September 2016 2 minutes ago, Bayfox said: So does the property count only if you have equity in it? If you have a real right to a property, I.e you own it, then I'd imagine the value of your house contributes to your net worth. Likewise however a subordinate right such as a mortgage would also contribute. So if you own a £150k property but owe a bank a mortgage of £150k your net worth, excluding anything else, would be £0
Richard Posted 30 September 2016 Posted 30 September 2016 Will be worse in 10 years time for those born in the 90s I'd imagine
Carl the Llama Posted 30 September 2016 Posted 30 September 2016 Can only see it continuing to drop tbh. I'll have to be extremely lucky to get anywhere near having 27k to my name between now and when I hit 31.
MPH Posted 30 September 2016 Posted 30 September 2016 Do the council still do the right to buy scheme? I know that was a big thing a few years ago and theres probably a lot of people who benefited from that who are included in these numbers...
GazzinderFox Posted 30 September 2016 Posted 30 September 2016 3 minutes ago, MPH said: Do the council still do the right to buy scheme? I know that was a big thing a few years ago and theres probably a lot of people who benefited from that who are included in these numbers... How many people in their twenties actually get anywhere near the top of the council house list now though? I imagine you would probably need to have a disabled kid or be virtually homeless. I would estimate that 80% of the houses on my street are now in private ownership. I really feel for my children's generation, aspiration amongst that age group of the working class will no doubt be at an all time low by the time they are thinking about buying a house. And we still have muppets moaning about the building of new homes on their doorstep. This good very well end in serious civil unrest.
MPH Posted 30 September 2016 Posted 30 September 2016 8 minutes ago, GazzinderFox said: How many people in their twenties actually get anywhere near the top of the council house list now though? I imagine you would probably need to have a disabled kid or be virtually homeless. I would estimate that 80% of the houses on my street are now in private ownership. I really feel for my children's generation, aspiration amongst that age group of the working class will no doubt be at an all time low by the time they are thinking about buying a house. And we still have muppets moaning about the building of new homes on their doorstep. This good very well end in serious civil unrest. That was basically my point.... that it was much more common for those a decade older.....
Trav Le Bleu Posted 30 September 2016 Posted 30 September 2016 2 hours ago, Manwell Pablo said: Don't get how it works.....27K what's that, money in the bank? Assets? Everything you have to your name? Sorry I should actually try reading the whole article. This is what I thought. Used to work in a bank ten years ago and I saw an awful lot of people's accounts. People having more than even a few thousand in their savings was very rare. Of course many people with a few thousand is then offset by two or three with hundreds of millions. Or should I say, footballers.
Thracian Posted 30 September 2016 Posted 30 September 2016 The young people I know choose to spend their money. A lot also choose to rent accommodation rather than buying and that is money gone for ever rather than being an investment in bricks, mortar and land. Another thing is vehicles. Appearances seem to matter more to today's youth than they did in my time. Kids often pay monthly for new or nearly new cars at prices that are sure to reflect the slow payments received and which actually work out at more each month than I actually paid to own my first car from the off... (£140)! . Again, the point I make is that I bought what I could afford and owned it. The same went for everything else including holidays. We saved up for them and very rarely went into debt because debt has a nasty habit of mounting and becoming more debt. I'm not saying that's the best way - it's the individual's choice and the wealthiest person in my close family once said he believed in using other people's money rather than his own, so I'm not even flying a flag for the prudence of my own upbringing. But it's no use spending all your money on cars, holidays,. football, beer, betting, women, nights out and/or rented accommodation and then blaming someone else when you don't get the chance to put anything aside.
Carl the Llama Posted 30 September 2016 Posted 30 September 2016 3 hours ago, Thracian said: The young people I know choose to spend their money. A lot also choose to rent accommodation rather than buying and that is money gone for ever rather than being an investment in bricks, mortar and land. Another thing is vehicles. Appearances seem to matter more to today's youth than they did in my time. Kids often pay monthly for new or nearly new cars at prices that are sure to reflect the slow payments received and which actually work out at more each month than I actually paid to own my first car from the off... (£140)! . Again, the point I make is that I bought what I could afford and owned it. The same went for everything else including holidays. We saved up for them and very rarely went into debt because debt has a nasty habit of mounting and becoming more debt. I'm not saying that's the best way - it's the individual's choice and the wealthiest person in my close family once said he believed in using other people's money rather than his own, so I'm not even flying a flag for the prudence of my own upbringing. But it's no use spending all your money on cars, holidays,. football, beer, betting, women, nights out and/or rented accommodation and then blaming someone else when you don't get the chance to put anything aside. Ridiculously ignorant statement Thrac. Do you honestly think most young people would choose to rent if they could afford to buy a house? Most of us rent because it's fiscally impossible to get on the ladder.
Finnaldo Posted 30 September 2016 Posted 30 September 2016 4 hours ago, Thracian said: The young people I know choose to spend their money. A lot also choose to rent accommodation rather than buying and that is money gone for ever rather than being an investment in bricks, mortar and land. Another thing is vehicles. Appearances seem to matter more to today's youth than they did in my time. Kids often pay monthly for new or nearly new cars at prices that are sure to reflect the slow payments received and which actually work out at more each month than I actually paid to own my first car from the off... (£140)! . Again, the point I make is that I bought what I could afford and owned it. The same went for everything else including holidays. We saved up for them and very rarely went into debt because debt has a nasty habit of mounting and becoming more debt. I'm not saying that's the best way - it's the individual's choice and the wealthiest person in my close family once said he believed in using other people's money rather than his own, so I'm not even flying a flag for the prudence of my own upbringing. But it's no use spending all your money on cars, holidays,. football, beer, betting, women, nights out and/or rented accommodation and then blaming someone else when you don't get the chance to put anything aside. To buy housing as a first time buyer is virtually impossible in this day and age, especially for anyone in their early to mid twenties. I know a grand total of zero people who have a new vehicle, or had one as their first or second car. My best mate is currently driving a 2005 Ford Focus Zetec, that's close to dying so when that dies he'll move on to 2010 VW Golf if he can. Regardless he'll be paying a couple grand for the car as well as the extortionate insurance cost regardless of the fact he's passed his time with a blackbox fine, it'll never be the £140 you paid and it never will be again. Regardless of the 'privileges' older generations will think we have with modern technology we'll likely never have affordable housing or decent pensions, Uni is the only way to get a decent job if you're not extremely lucky with a decent apprenticeship that won't pay you £3.30 an hour and dump you afterwards, and with that degree you're already in debt like it or not. Otherwise you'll be stuck in a low-paying job with few exceptions, and you'll struggle to pay for rent yet alone a house. You can't just leave school, hop into a middle payband job and buy a house within 5-8 years. Those times have well gone so it's understandable folks spend their money when there's little hope in sight.
Samilktray Posted 30 September 2016 Posted 30 September 2016 I refuse to believe he's that out of touch with reality, on the wind up surely with that post. What a dickhead.
Jon the Hat Posted 30 September 2016 Posted 30 September 2016 Wrong that people choose to rent, right that people don't save like they used to. you need 5% with help to buy. A lot of people can use that, more could if they got their shit together.
Soar Fox Posted 30 September 2016 Posted 30 September 2016 Anyone who wants to use the help to buy scheme should act quick. It finishes at the end of the year. http://news.sky.com/story/help-to-buy-housing-scheme-to-close-this-year-10598758
ozleicester Posted 1 October 2016 Posted 1 October 2016 Capitalism and neoliberalism have got out of hand. Too many people making too much while not caring about those left behind.
Recommended Posts
Archived
This topic is now archived and is closed to further replies.