the skint generation

[egb_hibs]

Study reveals financial crisis of the 18-40s

Patrick Collinson
Tuesday March 28, 2006
The Guardian

An official government study into Britain's personal finances reveals a lost generation of 18- to 40-year-olds unable to cope with debts and soaring house prices, with alarmingly low levels of savings and little hope of building a decent pension.

The study, by the Financial Services Authority (FSA) and Bristol University, published today, is the biggest of its kind undertaken in Britain. It paints a picture of a generational divide fuelled by higher education costs and the collapse of company pension schemes - with 42% of adults now with no pension and 70% with no meaningful savings.

The FSA will call today for a new national strategy to improve Britain's financial capability, including workplace-based financial seminars targeted at 4 million employees; making personal finance more prominent in the national curriculum from 2008; and "money doctor" packs which will be sent to 1.5 million new and prospective parents each year.

FSA chief executive, John Tiner, said: "There is an urgent and serious need to help the young. They are the first generation to be leaving college with massive debts, and while housing has always been a challenge, it's become extremely difficult for young people in parts of the country. Yet at the same time the young have become serious consumers. It was difficult for an 18-year-old to get a credit card 20 years ago but today it is relatively easy."

Around one-quarter of adults aged 20 to 39 have fallen into financial difficulties over the past five years, compared with 5% of over 60-year-olds, said the report.
It highlights a striking generational gap with regard to credit; 24% of young adults are currently overdrawn, compared to 11% of over-50s and just 4% of over 60s. The study blamed financial problems among 18- to 40-year-olds not on low incomes but on rapidly changing economic and social trends presenting young adults with greater challenges than their parents. "Even after lower incomes and limited experience are taken into account those in the 18 to 40 age group are less financially capable than their elders," said Mr Tiner.

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[TariqE]

A factor they don't seem to have mentioned is that lenders will not (generally) lend to those who are retired or those nearing retirement.

An 18 year old's income is highly likely to increase over the next couple of decades, but a 60 year old's maybe is not.

More debt on the younger generation because they are less of a risk to lend to than the old. (I just mean that as one factor in this trend).

[PILTONSTANY]

Originally Posted by egb_hibs

Study reveals financial crisis of the 18-40s

Patrick Collinson
Tuesday March 28, 2006
The Guardian

An official government study into Britain's personal finances reveals a lost generation of 18- to 40-year-olds unable to cope with debts and soaring house prices, with alarmingly low levels of savings and little hope of building a decent pension.

The study, by the Financial Services Authority (FSA) and Bristol University, published today, is the biggest of its kind undertaken in Britain. It paints a picture of a generational divide fuelled by higher education costs and the collapse of company pension schemes - with 42% of adults now with no pension and 70% with no meaningful savings.

The FSA will call today for a new national strategy to improve Britain's financial capability, including workplace-based financial seminars targeted at 4 million employees; making personal finance more prominent in the national curriculum from 2008; and "money doctor" packs which will be sent to 1.5 million new and prospective parents each year.

FSA chief executive, John Tiner, said: "There is an urgent and serious need to help the young. They are the first generation to be leaving college with massive debts, and while housing has always been a challenge, it's become extremely difficult for young people in parts of the country. Yet at the same time the young have become serious consumers. It was difficult for an 18-year-old to get a credit card 20 years ago but today it is relatively easy."

Around one-quarter of adults aged 20 to 39 have fallen into financial difficulties over the past five years, compared with 5% of over 60-year-olds, said the report.
It highlights a striking generational gap with regard to credit; 24% of young adults are currently overdrawn, compared to 11% of over-50s and just 4% of over 60s. The study blamed financial problems among 18- to 40-year-olds not on low incomes but on rapidly changing economic and social trends presenting young adults with greater challenges than their parents. "Even after lower incomes and limited experience are taken into account those in the 18 to 40 age group are less financially capable than their elders," said Mr Tiner.

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That about covers me tbh,Own my own home but can't afford a pension and any spare cash goes on my daughter or me.
As my dad says you can't have a future if you dont have a now.

[Hampden_Hibby]

They're rattling up the mobile phone bills without the wherewithall to sort it out. That's why they're skint.

[TariqE]

Originally Posted by Hampden_Hibby

They're rattling up the mobile phone bills without the wherewithall to sort it out. That's why they're skint.

Yes! mobile phones should be banned in order to stop this!
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[Hampden_Hibby]

Originally Posted by TariqE

Yes! mobile phones should be banned in order to stop this!
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Now we're talking.
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[Ewan]

Originally Posted by TariqE

Yes! mobile phones should be banned in order to stop this!
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You'll upset Forza with talk like that.

I don't know why this should come as a surprise. The ever increasing number of university admissions in the past 15 years has created a generation dependant on loans. Fewer people are leaving schools to go straight into full time employment, therefore fewer people saving.

No offence egb, but this seems a bit of a non-story IMO.