Thursday, July 28, 2011

Children destined to be poorer than their parents

Remember the future? The future was always a better place, in which one’s children could look forward to better education, higher incomes and better homes. They would have more money to spend on luxuries, take more holidays and at the end of it all enjoy a longer and more secure retirement. Unfortunately, the future isn't what it used to be.

Parents belonging to the baby boomer generation, the one born between 1946 and 1962, find themselves in the uncomfortable position of having to explain to their offspring why life is going to get tougher.  

Baby-boomers have had more financially carefree lives.

There are several factors, including unemployment, unsubsidised university education and increased price of housing. And then there is the burden of aging population. Over the next 18 years the majority will retire, placing a huge burden on those who come after them. 

Because of these circumstances, there is a general lack of optimism among the young generation today. Many are angered by this reality and find it unfair. Some just recognize that their parents were lucky.

There may have been a period of full employment for the baby-boomers in the 1950s and 1960s, but it wasn't the same case for people in the 1920s and 1940s. "We need to find our own satisfaction", says British financial consultant Alvin Hall. "People are less patient than they were. Parents are less patient for their children and children are less patient for themselves. We need to be more patient.”


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