Debt And Housing Costs Make Young Worse Off Than Past Generations

[interestrateripoff]

http://www.theguardian.com/business/2014/aug/05/debt-housing-costs-young-generation

Young people face a steeper climb to achieve the lifestyle of today's baby boomer generation, according to an index measuring intergenerational fairness which recorded a rise from last year.

The declining affordability of housing for the under-30s accounted for the increase alongside a rise in government debt, which future generations must pay.

The intergenerational fairness index, which was created by a charity, the Intergenerational Foundation (IF), to compare the burden faced by younger people with that of older workers and retirees, rose to 133 points in 2014 from 130 last year.

The IF also found that under-25s suffered from stagnant employment levels and low levels of house-building.

It said there has been a rise in the cost to the workforce of the state pension, while a fall in GCSE pass rates would put an immediate brake on the earning capacity of many young people. The index also measured a decrease in democratic participation by young people and increases in greenhouse gas emissions.

Still as house prices can only go up their wealth will increase.....

[TheCountOfNowhere]

[Billy soy]

Nice article, bit of an eye opener seeing retires incomes up over 5% whilst workers supporting them down over 6%. And the NIC contributions, is there a good reason for boomers that keep working past retirement to not pay NIC whilst working full time? Do they still get to draw state pension whilst working full time and paying no NIC?

Edited August 6, 2014 by hans kammler

[VeryMeanReversion]

Nice article, bit of an eye opener seeing retires incomes up over 5% whilst workers supporting them down over 6%. And the NIC contributions, is there a good reason for boomers that keep working past retirement to not pay NIC whilst working full time? Do they still get to draw state pension whilst working full time and paying no NIC?

If working, they pay NIC on that part alone. They do not pay NIC on pension payments.

This is one of the reasons to use salary sacrifice. No NIC to pay for employer and employee. Later, withdraw it tax-free or at basic rate without NIC. In may case, I worked out the NIC savings were worth around £3K a year.

[sPinwheel]

Surely the young should just stop buying a new smartphone and ipad every month.

[19 year mortgage 8itch]

If working, they pay NIC on that part alone. They do not pay NIC on pension payments.

This is one of the reasons to use salary sacrifice. No NIC to pay for employer and employee. Later, withdraw it tax-free or at basic rate without NIC. In may case, I worked out the NIC savings were worth around £3K a year.

Er, because of debt and housing costs, the young can't afford to defer their earnings in this way

[19 year mortgage 8itch]

Great idea. What they really need to do is put 'investment' in houses on a level playing field with pensions. On the basis that 'my home is my pension' anyway.

Might give an extra heave ho to the housing market in time for the general election.

Gordon Brown may have been stupid enough to propose a scheme like that but not even he was stupid enough to implement it. George Osborne on the other hand...

[bankstersparadise]

Great idea. What they really need to do is put 'investment' in houses on a level playing field with pensions. On the basis that 'my home is my pension' anyway.

Might give an extra heave ho to the housing market in time for the general election.

Allow income tax deduction of mortgage interest? I'm only joking that is just another tax break fro the old and rich.

Interestingly all the foreigners I work with can't believe how obsessed the UK is with property and how expensive it is given there is no tax benefit to owner occupation.