GRIM FINANCIAL OUTLOOK FOR THOSE BORN IN THE 60s AND 70s – According to a number of economic experts those of us born in the 1960s and 1970s face an altogether grim financial outlook due to almost non-existent pay rises, diminishing pension pots and a property market in which price rises are skyrocketing.
The Institute for Fiscal Studies (IFS) today also warned that those now between the ages of 34 and 53 are likely to be hit hardest and that it is inevitable that they will be far worse off financially than their parents; many fear that their only chance for a reasonably comfortable retirement will be if their parents leave sizable funds in their wills.
The recent report noted that between 1974 and 2002 the economic outlook was far better than today with the average rise in income or benefits growing by an average of 1.5% annually; a figure that now stands at 0.1% annually.
Many people born in the 1940s viewed the property market as a way to invest and indeed leave behind an inheritance for their children.
Almost two thirds of those living in London had managed to get on the property ladder by the age of 40; for those born in the 1970s this figure has dwindled to less than half and despite the Government’s recent ‘Help to Buy’ scheme for first-time buyers it is likely to get much worse as this is now fueling a rise in property prices in the capital and indeed across the country.
The IFS report clearly shows a rapid switch in fortunes as pension pots continue to dwindle and with Britain’s increasing national debt many fear that the Treasury will simply not be able to pay out pensions in the future; the situation is exasperated as our aging population grows and the fact that people are living longer.
The report certainly depicts a grim financial outlook but it is most likely that those today in their teens and early 20s may well face an even worse time as they are left saddled with the growing national debt.
As the British population continues to accumulate more debt through the use of bank loans, credit cards, pay day loans mortgages, hire purchase agreements and other such borrowing it is our children who will be living in a nation riddled with debt.
Our economic woes and indeed the bleak economic future lies within the movement of once being a nation who produced to one that consumes and our greed appears to know no bounds.
With Christmas just a few days away it is clear that the population has spent vast sums of money for this year’s presents and feast and over 95% of it will be accumulated credit card debt.
There are some economic experts who now believe that retirement for many will not be an option but if we do not start to control our spending and accumulation of debt then Britain may well go the same way as Greece resulting in no jobs and no money for the foreseeable future.