Which generation had it tougher? We share your views

Our research has shown a real mix of feelings about which generation has had it tougher.

Tomorrow the Financial Conduct Authority (FCA) will be issuing its feedback statement on its industry discussions on Intergenerational Differences. In the last (2019) interactive investor Great British Retirement Survey, this was a subject which provoked the most comments from the 10,000 responses – it is an important and emotive issue.

Myron Jobson, Personal Finance campaigner, interactive investor says: “Far from ‘avocado shaming’, our research has shown a real mix of feelings about which generation has had it tougher. More than half (51%) of respondents said that, when it comes to money, younger generations have a tougher time than they did - although 29% thought the opposite and there were some colourful verbatims, that show that many respondents were conflicted in their own minds. 

“Coronavirus has been tough on everyone, and young people face reduced job prospects, increased job insecurity, and eye-watering amounts of student debt. Many older generations may well be focussing increasingly on the intergenerational transfer of wealth. Peace of mind, not running out of money, and having enough money to leave behind to children are all top objectives – and they are not straightforward ones, particularly in a Covid-19 world.”

Verbatims from the interactive investor Great British Retirement Survey

Respondents, especially those who are retired, were keen to comment on intergenerational differences, with many acknowledging that they had it tough, too.

“I started part-time home working at the age of 12, part-time in the economy at the age of 15, had part-time jobs through university, was working three jobs a day and doing part-time study from 1979 to 1981 and went almost two years without any income during the 1990s recession. However, youngsters from poorer backgrounds have even less chance of getting on the housing ladder in the South East than I had. Furthermore, the peer pressure to conform to the idea of buying designer clothes, mobile phones, etc, was non-existent in my youth (I was brought up on a council housing estate where everybody was poor). When I had no money, I went without. There seems to be an expectation today that nobody should go without, but there seem to be fewer jobs for youngsters to pick up some extra money.”

(Survey participant 3,276, retired)

“I don't think the younger generation take enough care with money. They spend today and don't worry about debt or tomorrow.”

(Survey participant 5,679, retired)

“They have awful pressure from a combination of repaying university costs, starting pension contributions, getting a deposit together for a first property, and relationship problems seem far more common these days and can prove expensive.”

(Survey participant 676, retired)

“They do have it harder because of house price costs, but lots of them spend a lot on money on things we could never have dreamed of when we were starting out.”

(Survey participant 5,680, retired)

“I do not believe that younger people will have the sort of retirement that my wife and I have had or for as long, as I don't think it will be affordable in the future. Younger people will have to work much longer and will not benefit from the final salary pension schemes.”

(Survey participant 4,447, retired)

“It is harder for them housing wise. They seem to have more disposable income”

(Survey participant 5,681, retired)

“Jobs aren't so easy to come by and are more likely to be short-term contracts rather than permanent. Neither of my two children could have afforded to move into a house of their own without our help.”

(Survey participant 5,686, retired)

“In some ways they have it tougher, but in others easier. Young people expect a higher standard of living and aren't as frugal as my generation was, and often don't seem as keen to save. On the other hand, property prices are much higher now proportionately than average earnings, although offset to a small amount by mortgage interest rates being very much lower and more stable than in my day. They rose to 15% at one time.”

(Survey participant 8,418, retired)

“Although property prices are much higher, I had to cope with negative equity, which meant I couldn't move for years. We also had high interest rates (10-15%). The younger generation have to have it all, they want all the latest tech and think nothing of paying for the latest iPhones. They have to have an active social life, spending lots of money on going out for meals, cinema, holidays, etc. I have only bought items that I can afford. Although I have credit cards, they are paid off each month. 

“They moan about paying university fees, but remember when I was at school, only the top 15% went to university to study proper academic subjects, so the government of the day was able to pay grants. Many younger people are not clever enough to study ‘proper subjects’ that will get them decent jobs, but take ridiculous subjects such as media, theatre studies, etc. Why should we pay a grant to people who take subjects that are no benefit to society?”

(Survey participant 214, retired)

“We benefited from having university fees and receiving non-repayable grants, so I sympathise with those who do not now receive these benefits. However, we think younger people in general seem to think it is OK to spend their incomes on enjoying life without saving for their old age.”

(Survey participant 4,506, retired)

“I think the younger generation will have to work longer and are likely to get comparatively less pension.  The cost of housing is higher now and it is likely that the low interest rates will not last for much longer, making payments higher for the next generation.”

(Survey participant 878 – retired)

“Yes and no. Some costs such as university, housing etc have massively increased but on the other hand, it’s my impression that younger women are not going to accept the gender pay gap for much longer.”

(Survey participant 7,648, non-retired)