Young people will now remain poorer than their parents

The march of progress has gone off course

This is not the way it is supposed to work. By the time parents have completed their watchful rule over their offspring, the systems of the world should have improved sufficiently to take over the job. That was the plan wasn’t it? To grow industry and learning to further enhance society. This is The West – the land of opportunity, isn’t it?

It hasn’t worked out that way.

People aged between 18 and 30 can now expect to be “significantly disadvantaged”, compared to their parents, and to remain “poorer than their parents at every stage of life”, according to the latest research.

These dismal findings come from the Institute for Fiscal Studies (IFS), who discovered that during the years of the financial crisis, as inequality protest movements like Occupy swept across the globe, older generations in the UK continued to accrue more money, while young people’s opportunities have become increasingly bleak.

Households aged 45 – 54 saw average gains of £38,000 between 2006 and 2012. And of this group, a quarter grew their wealth by more than £138,000.

This huge rate of growth is largely down to an increase in pension values over this period. Nice work if you can get it.

It means that young people can now expect to be poorer than their forebears later in life.

IFS research economist and the report’s author, Dave Innes, said: “Despite the financial crisis, household wealth on average increased in real terms over the late 2000s, driven by increases in private pension entitlements.”

He added that “working-age households are at risk of being less wealthy at each age than those born a decade earlier.”

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Readers' comments (1)

  • Anonymous

    Good news for the planet, less money to burn. Also roads are safer because there are more young women drivers than men because of insurance costs.

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