Financial crisis of the 18-40s (as in people aged 18 to 40)

whiteflag_3

competitionscafe wrote:

And.."Four out of 10 consumers who have an equity Individual Savings Account are unaware that its value can fluctuate with stock market performance."
http://news.bbc.co.uk/1/hi/business/4850160.stm

40% of people who have an equity ISA are unaware that its value can fluctuate with stock market performance! Unbelievable.

I think you'll find that is why some posters, me included get frustrated at SIPPS being recommended to evey tom,!!!!!! and Harry.

meanmachine_2

There does seem to be a massive divide opening up. Those 35+ really have had it comparatively easy, and will continue to, as they are the mass electorate.

Those under 35 are royally screwed. Massive student debts (because the boomers refuse to pay for grants anymore), dismal pensions, sky high house prices, very low wage inflation.

I do wonder who's going to be buying all these expensive homes, paying these huge taxes etc in the next 10 years...

al_yrpal

meanmachine wrote:

There does seem to be a massive divide opening up. Those 35+ really have had it comparatively easy, and will continue to, as they are the mass electorate.

Those under 35 are royally screwed. Massive student debts (because the boomers refuse to pay for grants anymore), dismal pensions, sky high house prices, very low wage inflation.

I do wonder who's going to be buying all these expensive homes, paying these huge taxes etc in the next 10 years...

I hear this whinge all the time!

When I left school less than 10% went on to university. Too right us boomers (and older) are reluctant to pay for another 40% to go to there with so many individuals uselessly fannying around afterwards. If it were actually socially useful to the whole of society for 50% to go, we might think differently about our money being used for this purpose, but its not. Its just another example of an attitude that pervades in the UK where everyone thinks they are entitled to everything, regardless of what they personally contribute. Why is the willingness to stand on ones own feet slipping away. Does it come from indulgent parenting?

Sky high house prices are nothing new, we've seen it all several times before, and, its sometimes been accompanied by swingeing job losses - be afraid. Today's economic climate is difficult for youngsters, but its nothing new, and its a damn site preferable to much of what I have seen and experienced over the last 40 years.

As for pensions, its simple, you pay in and you get something out. If you are reluctant to pay, you won't get enough. There is no guardian angel up there, at the end of the day the solution lies only in individuals hands. Helicopter mum looked after you till you flew the nest, and it can be a bit of a nasty surprise when you have to make your way on your own.

meanmachine_2

al_yrpal wrote:

As for pensions, its simple, you pay in and you get something out. If you are reluctant to pay, you won't get enough. There is no guardian angel up there, at the end of the day the solution lies only in individuals hands. Helicopter mum looked after you till you flew the nest, and it can be a bit of a nasty surprise when you have to make your way on your own.

Oh I'm sorry. I must have missed my invite to join a gilt-edged final salary pension scheme whereby I can retire early at 55 and live for another 30 years in decadence.

You sir seem to have very little grasp of what young people are facing.

Fortunately, when I went to uni I had a grant. That doesn't stop me empathising with those going through the system now who are being lumbered with huge debts.

Now stop whinging about young people.

mary

al_yrpal wrote:

As for pensions, its simple, you pay in and you get something out. QUOTE]

I couldn't agree more. The point you are missing ithough s that when you come out of uni with a £14K student debt, you are living in rented accommodation in the area where the jobs are, you can't afford to save to get on the property ladder, to start a family, let alone pay into a pension scheme - not forgetting as in the case of my one son, the starting salary was £14K and rent was £650 p.m. in Guildford area.

My three sons all went into areas of study where the UK had a lack of expertise according to the government spiel at the time i.e. design engineers, computer staff. We specifically suggested they studied in areas where within reason they would be more sure of getting employment related to their field of study, but of course none of us have a crystal ball.

nearlyrich

I am 44, I didn't go to uni but I have a decent job I started work at 18 and haven't had much time off since. We have a house which has appreciated to 3 times the price we paid, it was a choice to spend money on a pension, paying off the mortgage etc, it wasn't easy, I can remember 15% interest rates and I was never offered a final salary pension.

I chose to spend money supporting my children through university as their chosen careers require a degree to get in. Even with help they will end up in debt to the student loan company, they understand that it's either a uni education or designer clothes etc. Fortunately I was broght up in a close family where we had not much money but lots of love and support and they have been brought up the same.

I really feel for the young people but one of my son's housemates got their loan in Jan and spent it on shoes, clothes and a holiday and then had no money for a deposit for the house next year. They have to realise that you can only spend money once and no-one is entitled to everything you have to work for what you get.

ReportInvestor

mary wrote:

Student loan figures for the next academie year from our LEA are approx £4,400 p.a. and tuition fees are £3,000 p.a. That's what our daughter will be living on.

No she won't. That's not nearly enough.

I suspect you mean, "that's all she'll be getting" .

meanmachine_2

nearlyrich wrote:

it wasn't easy, I can remember 15% interest rates

Yeah, and...?

If you were a saver, you'd be laughing. If you had a large debt you'd see it float away off the back of high wage inflation.

I'm gobsmacked that people think high interest rates are automatically bad thing.

Try taking on a massive mortgage with no wage inflation to help you out.

Seems to me that it's not just the 18-40s who need to be educated.

Interest rates are low because wage inflation is low - 2.8% according to recent figures.

Who benefits from low interest rates? Lenders - banks in other words.

Sheesh. I give up.

mary

As I said earlier, if she runs out, she will have to get a job term time/holidays

al_yrpal

meanmachine wrote:

Oh I'm sorry. I must have missed my invite to join a gilt-edged final salary pension scheme whereby I can retire early at 55 and live for another 30 years in decadence.

You sir seem to have very little grasp of what young people are facing.

Fortunately, when I went to uni I had a grant. That doesn't stop me empathising with those going through the system now who are being lumbered with huge debts.

Now stop whinging about young people.

Lucky you going to Uni on a grant - try getting your degree at night school whilst holding down a full time job.

I've got young kids, and I know precisely what they are facing, its no different to what I faced. I guided my kids to avoid debt and didn't automatically assume that University was right for them. One went, and graduated as an Engineer like me, he's sitting pretty. The other wanted to be a musician, didn't listen and made some of the mistakes alluded to in this thread. After some hard knocks that taught her the lesson the hard way she's now seen the light.

You all seem to want to retire at 50 or 55, and whinge when you can't - get real. If you want that gilt edged pension and a comfortable retirement you have to get in the right job, graft at it and save hard on top. If you go to uni today you have got to gauge whether that degree is going to give you a fast payback to clear the loan - otherwise don't go. Seems like a great control mechanism to me. Its the price all graduates are now paying for letting so many underendowed students into the universities.

As for the housing problem take tips from this site, work in the evenings and on weekends like we did, and save up that deposit. If my daughter and her bloke can manage to be FTBers in SW London on 20 grand a year each just now, I am damned sure it's easier in other places.