MoneySaving Poll: Are you richer than your parents were?

Former_MSE_Sam_M

Poll started 5 January 2016

Are you richer than your parents were?

The world is richer than it used to be, but do you feel it? Taking into account both wealth and income (and factoring in inflation) how do you think you stand compared with your parents?



Are you richer than your parents were AT THE SAME AGE?

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Stevie_Palimo

Obviously yes as look at incomes, house costs, cars and so on with wages now compared to way back when then for most that work and own homes and so on would be richer.

janE1956

probably not got as much in the savings as my parents at my age but and it is a big but I enjoy treating the grandchildren and seeing them enjoy it. My mother scrimed and saved wouldn't spend and for what????? you cannot take it with you, nice to be comfortable but money is for pleasure enjoy it now

torbrex

They had 5 children to raise, including one that was disabled and they made a damn good job of that.
I have no dependants and in spite of a good many more foreign holidays than they ever had by my current age, I am way better off than they were.

missbiggles1

My parents had occupational pensions as well as SRPs but as their jobs were poorly paid, those weren't high. Because they supported me to get a good education, I earned more and so get a better pension. That makes me much better off in retirement than they were.

pollypenny

missbiggles1 wrote: »

My parents had occupational pensions as well as SRPs but as their jobs were poorly paid, those weren't high. Because they supported me to get a good education, I earned more and so get a better pension. That makes me much better off in retirement than they were.

Same here, but my parents both smoked and drank a fair bit, as was the culture of the time. they could have been better off.

One of the reasons that we are comfortable now is my financial pessimism, based on the parents, and high interest rates over the years.

ancilla100

Hard to say.

At my age (in the early 1970s) they owned property in the Home Counties, were married, (i.e. had 2 average incomes contributing to the household) and had four children aged between 2 and 11 with another on the way.

I do not own property and am still in the laborious process of trying to save for a deposit. I am single and renting in London. I earn more than one of them would have (if you look at an approximation of what they would earn today) but I'm still working on one salary rather than two. I have no children so no dependants so lower costs.

On balance I think I'm better off but it's hard to compare the difference of having more kids in a house you own 40 years ago with trying to get onto the property ladder in London today when you're single, even if that means you've got no dependants.

nearlyrich

There are many ways to measure riches and if you count up the people who loved and respected my parents I think I have some way to go !
At my age now my dad was weeks away from dying of cancer never owned a property or bought a new car, had taken very few holidays and never been abroad. My Mum did own a share of a house later and we took her abroad, she didn't drive so car ownership is not a valid frame of reference.


One of the ways I am richer is that I had a better education neither of my parents went to school beyond 14 mum because her mum was widowed and they needed her wages and dad because his dad was greedy and he wanted his wages. They both felt that it was important to support us in education and I know it was not easy but we all got a decent education and good jobs.


Just on financials I am richer by a long way but there is more to riches than how much money you have.

missbiggles1

pollypenny wrote: »

Same here, but my parents both smoked and drank a fair bit, as was the culture of the time. they could have been better off.

One of the reasons that we are comfortable now is my financial pessimism, based on the parents, and high interest rates over the years.

My parents both smoked but I drink far more than my parents ever did. My dad thought having alcohol in the house was quite immoral.

(I expect that, like me, your teacher's pension helps with current comfort levels..;))

PasturesNew

No.
For starters there were two of them. Additionally, it was at a time when there was work for anybody who wanted it and a further education/evening classes culture (with employers being actively part of that culture) where it was possible to take a job "at the bottom" then study at evening classes or day release to end up properly qualified in something there were jobs in.

My dad actually had a proper job, with advancement, for 25 years ...until there were big redundancies, he was laid off and spent 2 years on the dole, then took "any job". Another difference is that his "any job" probably pays the same £/hour today that it did back then in ~1985-1990!!

Also, dad had a works' pension. Mum didn't, but she did get half dad's when he died. I don't have a pension.

I'll never be as well off as my parents .... and they weren't well off.

lisa110rry

I am 59. At that age, my mother was working "for the State", ie in a job for State Government in the US. As is the case in the UK, such jobs in the public sector are less well paid than in the private sector but carry with them excellent pension provisions. In addition, she didn't start working for the State until I was around 13ish, so around 1970, so she was already about 50 at that time (though she lied about her age on entering the US so she would have been considered 48 for pension purposes), so she was not far up the career progression at 9 years in when she was truly 59, the same age as me.

However, as I recall, when she reached retirement age (65 in 1985) she was offered the option to defer for two years and receive a larger pension for this reason and she chose to do so. This made her "67", or 69 in actual fact. She would have had 19 years in her pension pot which was a final salary pension. She died at the age of 79 and lived carefully but very comfortably more or less within her means, but with large savings in case she needed to.

It was always assumed I would attend University, which I did successfully, emigrating to the UK a few weeks after finishing my degree. I spent many years in basic office jobs, not making a huge amount of money, just enough to pay for food and personal needs, but my husband (married the year I emigrated and the reason for my move) was already a Civil Servant (now retired), so although at times of 15% mortgage interest we had to be a bit careful, we wanted for nothing important.

When our son entered secondary school I went back to work, progressing up the ladder mostly in the private sector, until now I am primary earner as Company Secretary/Business Manager of an SME and able to fully manage household costs with my husband contributing for the food bill with the rest of his pension his to manage as he wishes.

Financially, we are much better off with a larger, more substantial home, unmortgaged, in a pleasant village. We have three cars (one new but Motability leased, the other two ancient and driven by me according to the season); our son is financially independent and has been since leaving Uni in 2005.

So purely financially at this time, I am "richer" financially than my mother was, but looking ahead, I will not be as well off in retirement. I may have to sell the house to release equity to live on, but I hope it doesn't come to that as I love the home we've lived in almost 29 years. I put our "better-offness" down to the excellent education I was given and the mutual support between my husband and myself during our 38 year (so far) marriage. Bringing our son up to be independent and giving him a good education also contributed obliquely, because he was keen to work abroad and look after himself, which he has done since graduation. At 33 some offspring are still living at home which reduces available funds, increases costs reduces savings.

Emotionally, I feel immensely "richer" than my Mum was at my age. I've always loved people and been open and friendly with others, which she was not. When my Mum was 59, I was at Uni, so Mum had no dependents, but I don't think she was happy.