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porca misèria

The Generational Squeeze

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We've known for some time about financial advantages enjoyed by older people being closed off, with the biggest divide being between those born before vs after April 1960.

Some such thing was of course demographically inevitable. But demographics also say that the squeeze is finite, and we should emerge the other side. Now we have a marker for new generational privileges: the chancellor's new "lifetime ISA", with tax treatment that appears more generous than pensions as we know them.

I think he said those start from next April, for those under 40. That would make the next big birth date cutoff April 1977. If past government actions are anything to go by, once such a date is established, more changes hinging on it will follow.

So we now have markers for both ends of the Squeezed Generation. It's those born between April 6th 1960 and April 5th 1977.

Of course, subject to adjustment if I've misunderstood what he was saying about the dates.

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Except the more post 1977 birth date you are the more likely you are to hold onerous amounts of student debt

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If you were born in 1977 you were in your mid-twenties at the turn of the century, when houses were still relatively affordable. If you were born in 1960 you had the entirety of the 90s to get yourself sorted out with a house.

Hindsight is 20/20 but those in this 'squeeze' had opportunities that today's young people have never seen.

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If you were born in 1977 you were in your mid-twenties at the turn of the century, when houses were still relatively affordable. If you were born in 1960 you had the entirety of the 90s to get yourself sorted out with a house.

Hindsight is 20/20 but those in this 'squeeze' had opportunities that today's young people have never seen.

Yep

2003 was the last opportunity for some without the 125% ltv 6*salary nonsense

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Late March 1977 for me. Boom.

Si1 is right about the student debt though.

So don't become a student.....educate yourself or find an employer who values you enough to educate you....win,win.

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I'm 27 with a HTB ISA.. I could take advantage of the props with HTB or SO utlising my current HTB ISA. I'd be saving almost £300 p/m by not renting.. then I could open up a lifetime ISA using the extra money I have.. Then flip the house, utilising the lifetime ISA bonus 2018 time. :lol::lol::lol:

House flipping, millennial style. :P

Edited by Assume The Opposite

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If you were born in 1977 you were in your mid-twenties at the turn of the century, when houses were still relatively affordable. If you were born in 1960 you had the entirety of the 90s to get yourself sorted out with a house.

Hindsight is 20/20 but those in this 'squeeze' had opportunities that today's young people have never seen.

Hence my lol.

Porca feels hard done by. An Oxbridge degree and the luck of a man who could fall in a barrel of tits and come out sucking a septic milk gland.

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There is a case here of age discrimination surely?

I note that the NMW for 21-25 year olds had to be hiked this week to £6.97 after the government were warned about the legal implications of discriminating on age grounds.

They reasoned that giving the full living wage to 21-25's could push them out of the jobs market.

Edited by workingpoor

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I'm 27 with a HTB ISA.. I could take advantage of the props with HTB or SO utlising my current HTB ISA. I'd be saving almost £300 p/m by not renting.. then I could open up a lifetime ISA using the extra money I have.. Then flip the house, utilising the lifetime ISA bonus 2018 time. :lol::lol::lol:

House flipping, millennial style. :P

And there isn't a cat in hells chance that all of the tinkering rubbish he's pulled out of his **** today will be applicable when the time comes.

He's forgotten the whole basis on which people contribute to pensions and the like. Stability and surety.

He's a maniac. Already worse than Brown IMO. That takes some doing.

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The permanent 25% house deposit boost is a bit of a f#ck off to the middle generation, all the same.

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Import them from the 3rd world.

India has entire cities where 99% of the population are educated to Degree level. To get into Medicine in India millions compete for thousands of places - you need to get 99% in every exam just to have a chance.

We simply do not compete in the world today. We have been in decline since the 30s....but on the plus side we have more entertainment than ever. The situation reminds me of the HG Wells book/film the time machine. Remember what happens to those carefree nymphs that just play all day....they're food for the people who work to create their freedoms.

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Is it beyond these cretins in Westminster to simply treat people equitably? Feck, it's supposed to be the root of conservatism, is it not?

I am of May 1977 vintage, and there is precisely zero possibility that I will be submitting to such a cynical policy

Probably formed with the upcoming EU referendum in mind, similar to the 'pensioner bond' prior to the last election.

Stick your MadGainz bribes right up yer hoop, Osborne.

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Yeah thinking about it it is worth £32,000 if you hit the max deposit from 18-50 (+interest)

But you would be giving the government £4000 a year and then have conditions imposed upon you never seeing the money again until age 60

without forfeiting the bonus & a 5% charge.

Unless you buy a house.

Then at anytime you may need to access means tested benefits you are a sitting duck as they will know you have savings above the £6k limit

For me at 40 i would have to invest £40,000 over 10 years to make £10,000 but not get it for 20 years.

To make the £4000 a year investment you would have to pay in £76 a week (£333 per month)

who's in a position to do that these days?

Edited by workingpoor

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Will the lifetime ISA be exclusively a cash investment or will it permit stocks and shares investing too?

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Presume there are no guarantees about the T & C's of LT ISA ie changes in the future?

Could be locked in with terrible rates. It's basically more deliberate hpi fuel.

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I was born in '77 and was within the old student grants rules by two years. Thanks to Bliar in 1997 anyone born from Sept '79 and beyond who went onto higher education had to go onto the 'loans'. Kicked in in Sept 1998 iirc

Yes house prices were not too bad in the early 2000s but I certainly didn't predict that they would shoot up like they did. :(

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