Do you fear for your financial future as Mr & Mrs Average.

Cyril

Who seem to be battered on all sides now and later.

Just musing really having seen a lot of threads and comments about the latest banks increasing mortgage rates. Some people have said they are really going to struggle and they were roundly condemned for not saving whilst there have been 3 yrs low rates.

Was just thinking its not as black and white at that given that every other aspect of life in this country is now so expensive. The costs of fuel and food together with utilities have all but eroded the chance to have saved any of that mortgage reduction. Coupled with the fact many people haven't seen a wage rise in years and in some cases a reduction of wages or hours.

If people default and end up repossessed there isn't enough social housing to accommodate everyone.

Later on we're told to save for a pension ow work until you drop but what if your health won't allow it. Help our kids onto the housing ladder cos without parents help they'll never get a deposit together. Then there's the care home fees and then money to bury us.

I'm starting to think that to live in this country you need to be a high earner or totally on benefits so what happens to the vulnerable people in the middle holding on by their finger tips ?

I wonder how many people will look at having a future outside the UK.

fluffnutter

People bang on about living this 'dire' country all the time. The taxes are too high! The weather's rubbish! Blah blah blah! Most of them don't though. They just stay here and moan.

balletshoes

If Mr and Mrs Average are defined by saving money for the last 3 years because interest rates have been low, having a savings pot put aside for helping their child/ren get on the property ladder when the time comes etc, then I'm not Average - and neither were my parents, nor most of the people I know.

Oh, and as for living outside of the UK - my OH doesn't come from the UK, and I've spent months at a time living in his country. Until my DD is an adult, theres no way I'd be moving out of the UK - and even then, I can't think why I would.

victory

I agree with balletshoes we are also not average, we have not saved for three years, there is not a pot waiting for when the eldest wants to get on the property ladder, I lived abroad for many years, I love it here, my family are here, would not go abroad and anyway go there to what? The euro being as it is causing major recession/job losses/ re possesions in Greece. Spain etc they are just as bad off as us if not sometimes worse

Cyril

Moaning aside though it does seem that many people are struggling and the normal cycles of life are being cancelled / postponed due to rising costs of living.

ie leave school get job / go to uni

buy first home

meet partner buy bigger home / start family

climb career ladder

retire looking forward to 60's upwards to travel and enjoy life.

All hope of this has gone.

And there are no safety nets for anyone unless you are totally in the benefit system whereby all costs are paid.

Its a case of struggling to become established in a job / house at all and if you do hold on by your finger tips until some other curve ball arrives to take it away ie redundancy, spiraling costs, ill health etc etc.

I am so glad I am not starting out today.

I know moaning about it doesn't help but I do think we are seeing times a lot of us haven't seen before and there's no sign of it abating.

Cyril

balletshoes wrote: »

If Mr and Mrs Average are defined by saving money for the last 3 years because interest rates have been low, having a savings pot put aside for helping their child/ren get on the property ladder when the time comes etc, then I'm not Average - and neither were my parents, nor most of the people I know.

Oh, and as for living outside of the UK - my OH doesn't come from the UK, and I've spent months at a time living in his country. Until my DD is an adult, theres no way I'd be moving out of the UK - and even then, I can't think why I would.

Thats my point Mr + Mrs Average haven't been able to save during low mortgage rates as the cost of living has eroded any saving on the mortgage.

Mr + Mrs Average are really struggling.

victory

You are right I do feel sorry for my son, going on the property ladder saving for it, no chance, getting a job originally was bad enough, going to Uni uhm? Having debt hanging over him for many a year, it will all be a struggle yes.

victory

Cyril wrote: »

Thats my point Mr + Mrs Average haven't been able to save during low mortgage rates as the cost of living has eroded any saving on the mortgage.

Mr + Mrs Average are really struggling.

I think saving has been over taken with trying to survive, to get by month by month, very few people I know have a buffer...

stu20vt

I worked in Munich for a year but had to return to UK after trying to extend the stay as the company I worked for wanted me back in UK. Now married and have a young child, I would love to return, and planning on doing so within the next year. What with a great climate, the Alps on your doorstep, great beer and a safe environment for bringing up a family.
Quality of life is so much better than anywhere in the UK. Have a look at "Mercers" quality of living league table, best UK area was ranked 38th, Munich 4th in the world. In the top 50 places only one place was in the UK!
Yes tax is a bit higher, and you need your own personal healthcare but the overall quality of life in Southern Germany is far superior to the UK.
I agree, to have any quality of life in this country you have to be very wealthy (probably work all hours to earn so no time for pleasure) or be on benefits.

princeofpounds

When the economy is in trouble thanks to high debt, there is absolutely no way of escaping the pain.

There are ways you can stop the situation getting worse (austerity, if you are not too far in the debt trap) and most relevant to this topic there are different ways to take the pain.

Interest rates are a good example of the dilemmas. Low rates are necessary because the nation became addicted to cheap debt and businesses and households could not survive with higher rates, as the articles you reference highlight.

The problem is that low rates make holding pounds very unattractive, as you don't get paid much to hold them. So the pound is more vulnerable to depreciation, and everything that gets imported (oil, certain foodstuffs and machinery etc) is more expensive as the pounds buy you less.

So in a sense, instead of paying the interest to the holder of the debt, you pay the interest to the holders of real assets, particularly those you have to import like certain commodities.

(That's a simplified economic situation, but it captures some of the most important dynamics)

Debt, at root, is nothing more than taking tomorrow's consumption today. One way or another your future consumption will be suppressed when you reach your limit.

So yes, I do think the immediate future is not as happy as the past. But the unavoidable truth is that the happy times were living above our means, and we didn't complain then.

System

For years my husband has wanted to emigrate (back to Canada - his place of birth). Ive always been the one who has put her foot down and i really dont want to go but as time goes on i'm finding theres less reasons for me to stay.