Business News

Younger individuals don't really feel like they’ve a greater life than their dad and mom – right here's why

A report by the & # 39; Financial Times & # 39; describes the concerns of young people, especially millennials, about their future.

Grow your business,
Not your inbox

Stay up to date and subscribe to our daily newsletter now!

April
26, 2021

4 min read

According to a report in the Financial Times, young people under 35 are less optimistic that they will be better off later than their parents.

Far fewer American millennials earn more than their parents of the same age, the publication said. In 1940 more than 80% of children of the same age earned higher wages than their parents. That number has declined over the following decades; Until 1984, there was only a 50% chance that children would outperform their parents at the same age.

Related: 3 Professional Skills That Can Help You Succeed Amid a Pandemic and Beyond

Today, Millennials around the world are concerned that their future is not as bright as what they have been told. A 34-year-old Londoner, Akin Ogundele, told the Times that his main concern was giving assets to his children despite having a good job in the financial sector.

"If I carry on as I am, I'm not sure what to pass on," he said. "It can't be good for the country – the differences will only increase, the rich get richer, and those who aren't will be eliminated more and more."

A Times poll of 1,700 people around the world (from South Africa to China) found that while the majority of Millennials recognize that they have more access to education, mental health and travel options compared to previous generations, challenges seem insurmountable . These topics include rising rents and tuition fees, labor competition and climate change.

Young people are also concerned that generational prosperity contributes to greater inequality between rich and poor. As the Times points out, "the average inheritance relative to lifetime income of those born in the 1980s will be nearly double that of those born in the 1960s" as older generations accumulate more wealth. In other words, social mobility is incredibly constrained these days by the fact that those with wealthy parents have a lot more to gain than those without, many respondents believe.

"I am now the director of two successful companies, a startup and a suitably sized mineral exploration company," one person in Vienna, Liam Hardy, told the Times. "Even in these respectable positions, I would not have come here without wealthy and supportive grandparents. It would have been impossible to provide seed capital or to take the time to develop these businesses entirely on my own back."

In particular, respondents in France, Hungary, Italy and South Korea were more pessimistic about being better off than their parents, the Times said. Over 60% of people in these countries believed that they were less likely than their parents to have a secure job. In Hungary alone, 75% of respondents said their parents are less likely to live comfortably in retirement.

In addition, the share of the household value of millennials remains significantly low compared to their counterparts with baby boomers. Last year, millennials in their early 30s owned only 3% of total household wealth. Baby boomers, on the other hand, were 30 years old by the 90s and owned 21% of household wealth. That percentage rose to 57% in 2020.

The financial difficulties of young people were exacerbated by the financial crisis in 2008. In countries such as Spain, France and Italy, the employment rate for people between the ages of 15 and 24 has stagnated since 2008. The Times notes that less than 30% of people in the above age group were employed.

"The older generation doesn't understand our shyness, insecurity and frustration," a 26-year-old in Turkey told the publication.

"I have a professional job and (my parents) don't," added a corporate lawyer from London. "(But) In terms of … the full belly feeling of knowing your kids, will have a better future than you? Not so much."

Related Articles