Often referred to as Generation X, men and women born in the 60s and 70s will be poorer than the previous Baby Boomers of the 40s and 50s, according to findings by the Institute of Fiscal Studies.
Each generation seems to come with its own mindsets and trends. Often referred to as Generation X, men and women born in the 60s and 70s will be poorer than the previous Baby Boomers of the 40s and 50s, according to findings by the Institute of Fiscal Studies, or IFS.
The only exception will be if they inherit wealth since more than double the amount of folks born in the late 1970’s anticipate inheritances compared with Baby Boomers from the 1940’s. However, those unevenly distributed inheritances will most likely result in the already rich getting richer.
After studying individual financial situations of those born between the 40s and 70s, the IFS not only found that Generation X’s income remained the same as the previous generation’s, but that private pensions decreased. Also, they were more likely to spend money frivolously and less likely to be a homeowner.
The University of Dundee’s Beverley Searle said, “People born in the 1940s left school and entered work at a time when jobs were for life and credit was much more strictly rationed.” She compares that to the vicious cycle of more available credit allowing price increases above wages, which in turn has people of Generation X and later looking to obtain more credit.