Research data finds that boomers earned more than Gen Y’s

At age 25, boomers were wealthier than today’s Gen Y at the same age.

Do you feel like the younger generation is making more money than you ever did? According to new research by Australian social research company McCrindle, at the age of 25, baby boomers were far wealthier than today’s Gen Y at the same age. But that doesn’t mean boomers had it ‘easier’.

Gen Y’s (aged 22-36) comprise 22 per cent of the Australian population and make up the largest proportion (36 per cent) of the workforce. They are today’s parents, leaders and increasingly becoming wealthy accumulators.

Director of Research at McCrindle, Eliane Miles says the research into the wealth gap between boomers and Gen Y provides valuable insight into how income and wealth are distributed across generations.

McCrindle even made this infographic based on Australian Bureau of Statistics data to provide a picture of how the distribution of income and wealth has changed in Australia.

In an interview on ABC’s Nightlife, Ms Miles suggested that both baby boomers and Gen Y’s have faced their own unique set of financial hardships but neither generation has had it ‘easier’.

The wealth difference between boomers and Gen Y’s can be explained by a number of the usual factors, not least the cost of housing. The average annual full-time salary today might be $80,000 (compared with $19,000 in 1984), but the costs of acquiring a house today has risen exponentially.

For instance, the average price of a residential property in 1981, when many boomers were buying their first houses, was $64,000. In this same year, 61 per cent of Australians aged 25-34 owned their own home.

Across the nation today, the cost of buying a house has ballooned to more than 10 times that figure, and in 2011 the number of people owning houses in the 25-34 age bracket had dropped to 47 per cent.

While the cost of buying property was far lower 30 years ago, it was also more difficult to borrow than it is today. The wealth of boomers can, in large part, be owed to a mindset that attributed the accrual of wealth with hard work and loyalty to employers. Ms Miles says the hard work of boomers paid off, equalling a “miracle wealth accumulation” that allowed them to invest in property and to offer ongoing financial assistance to their children.

Boomers currently comprise 25 per cent of the population yet they own 55 per cent of the nation’s private wealth. This has contributed to the housing affordability issues currently faced by many Australians. However, social researcher Mark McCrindle suggests that “in 2020, when the oldest boomers hit their mid-70s, we will witness the biggest intergenerational wealth transfer in history” (around $2.8 trillion). The decades ahead may see the younger generations becoming the main beneficiaries of this wealth, potentially smoothing out the housing playing field.

Read more at mccrindle.com.au

Opinion: How should we use data?

The McCrindle research found that the wealth of baby boomers at age 25 was higher than that of Gen Y’s today of the same age.

These findings have allowed us to see how the cost of living has influenced consumer wealth and spending. Australians aged 25-29 have a higher disposable income than those aged 65-69. Interestingly, the McCrindle research found that since young people today have little prospect of owning a home, their consumer spending has risen, thus increasing their quality of life in comparison to that of boomers.

The flipside of this fact is that because consumer spending is so great, young people may be sabotaging their chances of ever owning property. However, until we see as much research go into expenditure as into income and wealth, we can never truly know whether people can actually afford to spend their wealth the way the trends suggest.

Furthermore, while boomers worked to accrue savings to live on later in life, a vast number of Gen Y’s are starting out with debt. i.e. education, placing them on the back foot before they even begin. While banks today are offering up loans more easily for Gen Y’s than they did when boomers were entering the housing market, the reality is that because mortgage repayments can be put off, debt can be blown out for an even longer period – making it even more difficult for young people to get ahead financially.

As Eliane Miles, Director of Research at McCrindle suggested, this data provides valuable insight into how trends in the wealth and spending habits of Australians have changed. However, we must remember to look at this data rationally and use it improve our understanding of the financial prospects for all Australians, rather than to create unhelpful intergenerational comparisons.

What do you think of the research findings? What was your experience of working and affording a house as a baby boomer? Do you think the financial challenges of Gen Y’s are all that different to what you experienced? 

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    COMMENTS

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    Nanday
    22nd Jun 2016
    10:27am
    We saved to buy our house first, then gradually furnished it with nice things. My Gen Y son had a different strategy and purchased a leather couch, big screen TV, etc. before he saved for a house. I don't know which is the right strategy, but he did not want to defer living a comfortable lifestyle whereas we took second hand furniture and made do until we got our house. It enabled us to buy a house more quickly. Also we lived through the era of mortgage interest rates hitting 18%. Ours was locked in at something like 10%, but that would be considered a huge burden by Gen Y, who have benefitted from sub-5%. So when my son complains that my generation paid less for our houses (relative to our wages), they fail to factor in that we paid more interest to borrow to buy them, which created a heavier monthly financial burden.
    Hasbeen
    22nd Jun 2016
    12:43pm
    Yep, so true. My first house was a 4 room, ex farm workers cottage, on the outskirts of the city. One of those rooms was a laundry/bathroom. No hot water, fuel stove, & a toilet out the back in the "little house" as they were known then.

    Used a camping table & stools to eat at, & no TV, but at 21 it was mine, well mine & the banks. Paying it off meant only one 24 year old car, & sausages & mutton chops were a large chunk of the menu. 4 years later we could upgrade to an average fibro box type house, & afford our first holiday. Just a week camping with mostly borrowed gear, but we felt we had made it, & we did.

    I was nothing special, almost all my mates were doing the same thing, & none of us thought we were doing it tough. Tough was what I'd done as a kid. Living in a dirt floor one room tin shed, while dad built a house as money & materials permitted. Even that was nothing special, half the people in our street were doing the same.

    When I look at my kids, with their huge homes, 2 new cars parked the street, beside the boat because the 2 car garage is full of toys, I do worry a little. I know their debt must be huge, & loss of one job could cost them the lot, but it is their business, & who is to say which is the best way of doing things. There is something to be said for living the good life today. Circumstances could make that difficult in the future.

    Perhaps having to be frugal when younger was a good thing. It is perhaps the reason I can live very comfortably now on the pension, where others appear to have difficulty.
    *Loloften*
    24th Jun 2016
    10:35pm
    Yep, bought our 1st dilapidated old weatherboard house in early 20s - $11,500, sold 3yrs later for $15,000 (ave home price then dbled every decade) after going without/sitting on fruit boxes/no ensuite/pantry/walk-in robes/no ducted heating & cooling/Internet/big screen HD TVs (bought small "2nd hand" black/white TV which "blew up" - almost causing house fire yr after/had catch-ups with close friends & family @ home (no "take-ways, restaurant meals/worked our butts off with 2 jobs (day/night) to pay off 17-18% mortgage interest rate. Bought a 4yo home thereafter when 1st child due, in what was then considered to be "out in the sticks," 22kms from CBD with by then slightly decreased %mortgage rates (8% was eventually best we could get few yrs later). Still 2nd hand furniture/no ensuite/pantry walk-in robe/ducted heating & cooling et al altho have since added most in past few decades + a HD big screen colour TV/Internet & have mobile phones et al. Reckon Internet & mobiles are the worst scourge on our Society - recent proof re our kids & us re: forgetting how to spell & especially communicate in person!!?
    Priscilla
    22nd Jun 2016
    11:02am
    Gen Y have never had it so easy. As a generalsation, I believe baby boomers have done their Gen Y children no favours in he way they have brought them up. Gen X seem to have it togethe. I've worked with a numbe rof Gen Y people and have found them just as dedicated to their work as war babies and baby boomers. But some Gen Y (generalising again and through no fault of theirs) seem to believe everything is owed to them - no hard work required, no going without exeriences, overseas holidays, no savings. eople of our generation never had free child care, first home buyers grants only came in in teh 80s I think. We didn't buy our own home until the 90s because we couldn't afford to. We went without. Very few baby boomers in comparasion to Gen y have university degrees or the capacity to earn as much as the Gen Y do in the future. sure they have a uni debt but a lot seem to avoid paying it back.
    I think enough of the comparisions because Gen Y on the whole were not brought up by parents who experienced the great depression where mothers bleaced flour bags to make clothes for their children.
    Gen Y have far more opportunites than baby boomers had. Enough of the comparisions and get over it and get on with life.
    heyyybob
    22nd Jun 2016
    12:09pm
    Well said Priscilla and totally agree with most of what you said :) Can't beat the old saying ...."Be here, now". This life isn't a practice run.
    buby
    24th Jun 2016
    10:55am
    yes Priscilla i can relate to that too. There was NO free child care. ONly the motherinlaw, thanks to her we were able to go to work, without her help we would not have survived. And of course, there were Jobs in the old days. YOU could find one as fast as you lost one.
    That is certainly not whats happening today. Today jobs are hard to come by. And they expect us to work till 70 LOLOLOL. OH yeh thats a real good joke. ON who? Us ....lol
    Priscilla
    22nd Jun 2016
    11:02am
    Gen Y have never had it so easy. As a generalsation, I believe baby boomers have done their Gen Y children no favours in he way they have brought them up. Gen X seem to have it togethe. I've worked with a numbe rof Gen Y people and have found them just as dedicated to their work as war babies and baby boomers. But some Gen Y (generalising again and through no fault of theirs) seem to believe everything is owed to them - no hard work required, no going without exeriences, overseas holidays, no savings. eople of our generation never had free child care, first home buyers grants only came in in teh 80s I think. We didn't buy our own home until the 90s because we couldn't afford to. We went without. Very few baby boomers in comparasion to Gen y have university degrees or the capacity to earn as much as the Gen Y do in the future. sure they have a uni debt but a lot seem to avoid paying it back.
    I think enough of the comparisions because Gen Y on the whole were not brought up by parents who experienced the great depression where mothers bleaced flour bags to make clothes for their children.
    Gen Y have far more opportunites than baby boomers had. Enough of the comparisions and get over it and get on with life.
    TREBOR
    22nd Jun 2016
    10:30pm
    I blame the feminists exclusively for inducting the children into the belief system that they should all have 'professional careers', instead of jobs that paid the way. (tongue-in-cheek smiley needed)
    TREBOR
    22nd Jun 2016
    10:32pm
    In my generation, 2% went on to tertiary education and only if they could afford to... I, for one, had one of the three highest IQs in my high school and was slated for medical school, but had to settle for second place instead of a free ride, being as my family was too poor and I had to get out and work at 16 ..... in this lot there is a massive over-supply of semi-educated idiots.... sorry 'bout that.
    MICK
    22nd Jun 2016
    11:02am
    As they always say 'the devil is in the detail'.
    At 25 I was a literal 'church mouse'. I was saving money like the clappers from a home business whilst going to university. No new car, only a real cheap second hand one. No restaurants. No entertainment worth mentioning. A pretty basic life as I was focussed on education and setting up a future.
    Ok, not everybody could or would live like I did but many who got on in subsequent years did. It was what people did in those times.
    Where the claim that boomers had it better falls flat on its face is that genY is a consumer cohort. They spend like there is no tomorrow, generally fail to plan for the week ahead let alone the decade ahead and then cry poor. My ears are still ringing about 'cannot afford to buy a home' when they have the lowest interest rates in a century and do not even have to save a deposit....boomers had to save at least 25% in a high interest environment.
    Your story defies the prevailing reality of the times. GenY could be living like kings were it not for the fact that their parents gave them everything including inflated egos and the belief that they were special and should be recipients of anything they wanted. What parents did not build in was a hard work and save ethic and a 'put off until later' ideology to get them under way.
    I do not believe that genY is worse off. It's a myth built around the 'poor us' house of cards which is promoted by the media.
    Lozza
    22nd Jun 2016
    11:49am
    Very well said Mick, my thoughts exactly. When I first left home I slept on a mattress on the floor, a bean bag as a lounge suite, a tiny pine dining table and a cheap as chips fridge (all second hand). None of the rampant consumerism that goes on these days. I eventually scraped a deposit together for a small unit which I upgraded to a modest 3 Bedroom house 10 years later. This is how it was back then. Gen Y (generally speaking) want the fancy 3 br, 2 bathroom house fully furnished with all the mod cons..and they want it now!. So they hock themselves to the hilt and wonder why they have no money after paying off the mortgage to fund the fancy lifestyle.
    heyyybob
    22nd Jun 2016
    12:15pm
    As the saying goes ....."Tcchh, kids today" :) I entertained my kids for years with the story of, in the early 60's my wife and I arrived in a new country with a 8 month old baby (our first). After settling into our (Department provided) empty new home and saving for a month or so I was despatched by my to a nearby auction to purchase some chairs for our kitchen/dining table. I got carried away at the auction and bought this beautiful old wooden wheel barrow, with every intention of building a veggie garden to provide for my family !! Guess who sat in the wheelbarrow whilst my wife sat on our suitcases at the table until we could afford (weeks later) for HER to go and buy some kitchen chairs ?? ............ :D
    KSS
    22nd Jun 2016
    12:24pm
    Yes Lozza, and don't underestimate the facts that today's kids expect to start where their parents finished. Many are more concerned with their overseas trips, social life and latest hi-tech 'stuff' and not prepared to forego any of it in favour of saving for a deposit on a smaller unit in a less favourable suburb.

    And lets not forget that most families back in the day did everything on a single salary. Today most would have two salaries yet still cry poor from the comfort of their parent's nice lounge.
    DC
    22nd Jun 2016
    1:58pm
    My God, Mick, thank you for your down to earth comments. Yep, that is exactly as it is and was. I don't agree with you on many things or today's political issues but this time you have nailed perfectly. My respect. Have a nice day and hey, good luck on July 2.
    mangomick
    22nd Jun 2016
    4:24pm
    What's happening on July 2
    HarrysOpinion
    22nd Jun 2016
    4:47pm
    Many of us ( baby boomers ) had it tough one way or another. But we were brought up to be resilient and many of us made it through all the tough going. Our taxes supported two previous generations 1) The Greater Generation and 2) The Silent Generation. Your parents and your grandparents.
    On the subject of the Intergenerational Saga I found this article interesting:-

    Abbott and Hockey talk of intergenerational theft, yet they seek to deny young people the benefits of government largesse that their generation enjoyed more than any other group in history.

    http://www.theage.com.au/comment/intergenerational-report-prepared-by-baby-boomers-who-had-the-best-deal-of-any-generation-20150303-13ujt7.html

    That support has undoubtedly helped make them the successful people they are today, but now they are using their time in power to deny those benefits to future generations.
    Retired Knowall
    22nd Jun 2016
    5:00pm
    I believe if you have spendthrift unappreciative siblings, have a long hard look in the mirror.
    My two Gen Y boys both own their homes and have a portfolio better than mine. They know they wont be getting much when we both leave this planet because We've both told them so. The biggest lesson we gave them is the only person that will look after them is them.
    The Dropkick Gen Y people you see around are most likely the siblings of Welfare dependent parents, because usually the apple doesn't fall far from the tree.
    HarrysOpinion
    22nd Jun 2016
    5:21pm
    The key to prosperity of any generation is Education. Tertiary studies and a helpful 'leg-up' from parents.
    Today's education must parallel the advancing technologies and focus on areas of future employment opportunities rather than meaningless general education knowledge which only lands them at the front door of Centrelink.
    Alex
    22nd Jun 2016
    10:02pm
    I agree Mick. The media has done its best to play wedge politics and create friction between the generations. Many more young people have to go to University today than was the case before the 1980s as many more jobs such as nursing, banking and the police force require degrees. When people graduate starting incomes are much higher and they catch up quickly, if that is what they want to do. I bought my first house at the end of my second year in the workforce and, as you said, it required living on nothing to get the deposit together.
    TREBOR
    22nd Jun 2016
    10:39pm
    I hate to say it, but my daughter has had more overseas trips than I have, and that includes visits to combat zones (the Army gave me my first good pair of shoes and plenty of warm clothing), and she has just married a man who has traveled and made movies about animal rights and is now standing for the Senate on an animal rights platform.

    Now I appreciate and agree totally with his (and her) views (their party's mascot is named after my daughter), and they will get my vote here this election .... but the difference is enormous between their opportunities in life and mine. For years I encouraged my children to buy their own homes while the market was low... they did not heed..... now I can only trust that the son-in-law gets into the Senate and can afford a home.

    Me? I'm on my third bought home and still have a mortgage to pay.... not a big one.. but still.... retirement with a few mega-bucks would be nice.
    Troubadour
    22nd Jun 2016
    11:39am
    I do think we probably were a little better off - but it was in the attitude we had to
    our earnings. We did not expect to have the BEST all at once - we saved for the big
    things we needed and did not start at the TOP. Bought a smaller house we could afford
    and then gradually moved up, put money aside for holidays etc. Our kids seem to think it is their right to start with the big house, big TV, big car - no matter how you have tried to educate them otherwise ! Also I think we were content with an average/good wage and did not expect MEGA bucks.
    Dallanhk
    22nd Jun 2016
    11:39am
    all this is simplistic delusion. We (the baby boomers) own houses because we saved up deposits, saved for furnishings, bought our first house - probably in a 'less popular' area - and did without other things. Gen Y wants I phones, exotic holidays, flash cars, games consoles, many, many nights out etc etc. Simple - you want a house you save and do without other things.
    ROB
    22nd Jun 2016
    11:44am
    totally agree Dallanhk
    Tom Tank
    22nd Jun 2016
    11:44am
    I am not actually a baby boomer as I was born at the start of WW2 but a big difference in my case is that by the age of 25 I had been in the workforce to 10 years and so had been earning an income all that time.
    I did start on the equivalent of $3 per week but by 25 I was earning about $40 then I migrated to Australia and started on $100 a week.
    It is not really valid to make comparisons between now and then as things have changed so much and just to measure earnings is overly simplistic.
    I find Gen Y work just as hard as we used to then I was 25 but with the same mix of those who had a great work ethic and those who did not.
    My experience was, and still is, that Australians are good workers and show plenty on "get on and get the job done" attitude.
    If younger generations do not seem to fit into that pattern then the ones to blame are their parents, i.e. us because we made them that way.
    heyyybob
    22nd Jun 2016
    12:18pm
    Oh, indeed TT. It is said that ...'we are ALL victims of our upbringing' I believe in that, you reap what you sow. Iss simples, yes ?
    Richied
    23rd Jun 2016
    9:51am
    An excellent point.

    I am a (late) baby boomer, who chose not to go to university (I matriculated with high scores in all subjects - I just couldn't see myself doing another few years study), so entered the workforce fulltime at 17. By the time my friends had left university, I had developed a career path and had earned at least three years income. For the most part, they never caught up financially.

    22nd Jun 2016
    11:58am
    Inter-generational comparisons may be worth worthwhile only if one takes into account a myriad of factors such as the state of the economy (both domestically and internationally), global currency valuations, financial loopholes which existed in the generations considered, legislation regarding investments, taxation laws and restrictions, etc, etc. I, personally, think it was easier (with the same amount of intelligence, desire, fortitude, and self-sacrifice) to make a quid years ago than what it is today, but I am pre-babyboomer old fart, so what would I know?
    Rae
    22nd Jun 2016
    3:38pm
    Yes Fast Eddie.

    You would have to look at the wages and cost of living.

    Many boomers started work at 15 years and 9 months too instead of leaving uni at 22 or 23 and then trying to find a job.

    I do know my gen Y children live in huge houses they are paying off and take frequent holidays and nights out. They go without nothing.

    It should be possible for a working person to buy a house in similar areas to those we could afford if they lived like we did for a decade or two.

    I loved Balmain when I was young but settled for a first home at Ettalong and a very long commute to work.

    You can still get a small apartment in Ettalong for around $300 000.
    Charlie
    22nd Jun 2016
    12:07pm
    For an early boomer, owing a house was the ultimate social status in life. It was evidence that you had made it. If a person stuck to their job and put a little away each week they would eventually find a little house to suit their income. That's after many years of saving.

    People were expected to stick to one job for a long time, it wasn't like now when a person can jump from one job to another and put it all down to getting experience or climbing the ladder of success. There was always the stigma of "not being able to hold a job" or being a "no hoper" if you didn't stay long.

    I think cars may have been a little more expensive by comparison to weekly income and medical care seemed to be pay as you go. I don't remember any Medicare in my school days, the 1950's. In the 1960's TV sets were more expensive and was stereo equipment.

    There were not many things to spend money on. There were a lot of hotels and I think overseas travel was much more expensive.

    When you had a job you were expected to arrive on time and go home on time. You were expected to spend your day working and not have long tea breaks or be gas bagging.
    There were some Public service jobs that were much easier, but then you didn't get payed very much. These jobs probably employed a lot of people who were unemployable in any other job.
    Rosret
    22nd Jun 2016
    12:12pm
    In 1978 you could only get a house loan on the basis of the male income. It was expected that the wife would soon be a mother caring for her infants at home. The entire infrastructure was based on a single income household. On this basis when two members of the house went to work their potential buying power meant families could live in the large homes we see throughout Sydney today. So what happened - demand. It soon became expected that both parents would work and therefore they could pay more. We actually shot ourselves in the foot. The price of land is solely determined on what the buyer can pay. Single incomes have doubled but house and land has gone up 20 fold. Its cruel - and its ridiculous. I really wish the government would provide cheap land and housing to take these prices off the boil and look after our youth.
    TREBOR
    22nd Jun 2016
    12:15pm
    Pointless Intergenerational Comparison. We had to physically work, in the main, for our incomes - now the thought of sweating outside the gym causes the kids to break out in a cold sweat....

    Not only that but we had a far more responsible government and approach to government than we've had here for the past forty years or so - in those days government at least DID things to benefit the majority while feathering their own nests, instead of just exploiting everything and everyone like rapist business people.

    The advent of far too many non-aligned social groups, often of the cunning kind, has rent this society into pieces, and all we see now is how much any clown who comes along can rip out of the public - who apparently have a bottomless pit of cash to subsidise ceos and board member richly for running what was once public utilities that returned a small profit to their shareholders - the general public.

    I guess that makes me both old-fashioned and some sort of socialist - perhaps the latter in the Bob Menzies mold.
    buby
    24th Jun 2016
    11:07am
    "We had to physically work, in the main, for our incomes - now the thought of sweating outside the gym causes the kids to break out in a cold sweat...."
    LOL oh you hit the nail right on the head with that one Trebor lol
    thats what i see, and hear.....lol
    Old Geezer
    22nd Jun 2016
    12:41pm
    It costs more to live today. We did the cheap things we actually talked to one another instead of paying money to do all those cool things with those electronic devices. I just shake my head when a see a couple having lunch each in their own world texting on their phones. Maybe all human contact today has become virtual but I better not go any further with that one.

    A young lady bought a new phone for over $1400 the other day but told me she was saving $0 a month. Still trying to work that one out when I can buy same phone outright for about 50% less.

    We did a lot more walking and all those cool cheap things of yesterday. Movies were only on once a week if we were lucky. TV had two channels and we tossed to see who would get up and change the channel.

    If we wanted new furniture we had to order it and wait for it to be made. It took weeks for the bank to decide whether you were the sort of person they wanted to lend their money to.

    I guess they do have it easier today then way back then but many lack the discipline to make things happen.
    Biddy
    22nd Jun 2016
    12:49pm
    We both worked hard to get our first home,it was only when our young son got very ill we were granted a housing commison home with the help of a local member it was in one of the new satellite city,our wage was not even half of what they get today,my husband worked from 6am till 5pm every day,while I worked a fruit shop weekends to make money stretch further,we had three little ones whom he minded while I worked ,we had to have a car because my husband needed to travel to work.I use to walk our daughter to school while pushing the other two in a pram.half a hour walk from where we lived,our wage was as little as 42 pounds a week,paid rent paid a car,plus all the normal household bills,we were often left with nothing ,couldn't afford to go out to eat,all meals were cooked by me,but made sure they ate good food as we couldn't afford to go to Doctors,so didn't have time to get sick,how you can possible say the baby boomers were better of then the Gen Y is a joke we gave up our family life to feed and clothe ourselves and our family,no holidays overseas for us, come to think of it never could afford holidays,we put the family and our life ahead of everything else ,clothes were made on a sewing machine entertainment was a Bbq at neighbors and we didn't expect handouts from our parents oh no we worked to get a life the best way we knew ,second hand furniture,a small television,second hand washing machine and fridge couldn't afford new stuff,but the home was always clean and so were the children we went without but we had a happy life,so when anyone says we had it easier think again we did not, houses were more affordable it's true but still we had to save and pay for it,even to the point of giving up being happy or spending time with our children,we never thought the world owes a living like they do to day
    jackie
    22nd Jun 2016
    1:02pm
    Of course we were better off at age 25 than Gen Ys. Things were much cheaper back then. There weren't so many taxes around and there were more jobs around with less competitive job seekers. Renters never had to pay for water and the utility bills were cheap.
    Anonymous
    22nd Jun 2016
    8:23pm
    Speak for yourself, Jackie. I was 1000 times worse off than the poorest Gen Y I know and I can't find a Gen Y anywhere who is anywhere near as poor as 90% of my friends and acquaintances were at 25. I think this ''research'' is a load of BS. Nothing but convenient lies to try to justify the constant attacks on the savings of retirees.
    particolor
    22nd Jun 2016
    1:03pm
    WE Made this Country what it WAS ! And the Latter Day Governments have SOLD it !!! :-( :-(
    END OF STORY !! :-(
    mangomick
    22nd Jun 2016
    4:27pm
    Don't you hate it when those Latter Day Governments knock on your door and start preaching to you.
    niemakawa
    22nd Jun 2016
    5:17pm
    And not a Saint among them.
    buby
    24th Jun 2016
    11:09am
    and i must say you hit the nail right on the head with that comment.
    They have indeed.
    How the times they have changed.
    and YEs niemakawa
    NOT a Saint among them is RIGHT!
    Lci
    22nd Jun 2016
    1:12pm
    As a baby boomer we were brought up to get a job if we wanted to leave school, once employed and if you didn't like the job you had to find another before moving on.I was taught how to budget and pay my outgoings first eg fares to work, groceries etc and if there was anything left to save it or then spend on something i wanted for myself. when buying a house same principle applied and then it was furnished with second hand goods. As the finances improved then items were replaced gradually. My mother was not one for giving handouts if i ran out of money so had to learn to be more frugal. the kids of today are not often taught these things and they want everything now and end up in debt they cannot afford then cry poor mouth.There was no baby bonus or parental leave so if we wanted to have children the finances were planned to cover parental leave or we just went without.Cloth nappees were to go, and often children were clothed in op shop gear. I dont think it did us any harm either.
    JJ
    22nd Jun 2016
    1:44pm
    I have a 31 year old already married with 2 apartments and a child.Ambitious, career minded and juggling time for jetsetting n family????. I was still breaking my back struggling to support my family at her age!
    Rae
    22nd Jun 2016
    3:44pm
    Yes JJ.

    I have a son with three properties, and two businesses at 33 years.

    His generation do not seem to fear debt and are offered it more easily.

    Gen Y are definitely better paid than we were at the same age and own more assets and have a much higher standard of living than in the 1970s.
    Occasional Traveller
    22nd Jun 2016
    1:59pm
    All valid points but those of us who were the first in their family to go to university because it was affordable aka free and entered the workforce without the burden of quite a hefty education bill (unlike our children who now have HECS bill to knock over) had a much kinder wage/property purchasing ratio than what it is today...
    TREBOR
    22nd Jun 2016
    10:43pm
    Yeee-usssh.. but's that because of the self-same 'educated' lot with their additional income and their savvy to buy properties are the direct result of being a pampered generation. They learned cunning from our immigrants....... now that cunning is setting fair to wreck everyone.
    scouserdog
    22nd Jun 2016
    2:05pm
    Men may have had it easier, women did not. We earned less, often did not get superannuation while the men did, families often did not support girls staying at school and going to university, women could not buy homes. In 1973 when I arrived here I could not even buy a TV on hire purchase without a male guarantor.
    particolor
    22nd Jun 2016
    2:10pm
    :-) Still the same in Lakemba !! :-) :-)
    Saalbach
    22nd Jun 2016
    2:09pm
    The problem with a comparison like this is that it doesn't take into account all the relevant factors. While the cost of a house may have increased 10 fold on average but incomes only 4 fold, this doesn't take into account the spread of the suburbs. My first home in 1976 was in a new subdivision approx. 15 kms from the CBD, and is now probably worth 15 times what it cost me. However, a new house twice as far from the CBD is now worth relatively less than what I paid. Naturally, a house in the same location will cost a lot more - take into account urban spread, and the costs are pretty good these days. Of course, Gen Ys wouldn't want to live on the edges of civilisation.
    particolor
    22nd Jun 2016
    2:12pm
    And some are New to Civilization !! :-) :-)
    David
    22nd Jun 2016
    2:53pm
    Sure, house prices have increased, but so have wages, but interest rates are only 4% now compared with 18% in my day.
    One reason why house prices are so dear now for first home buyers is that years ago people got a small, older and cheaper house in the outer suburbs for their first home. Now people for their first home want a larger home (with double garage, 4 bedrooms, ensuite etc.) that’s closer in to the city.
    Years ago people generally spent far more proportionally of their income on essentials and far less on services and discretionary items. Now it’s the other way around with people travelling many times before they reach the age of 25, driving newer cars (often heavily financed), going out to shows/restaurants/cafes/coffees several times a week etc.
    As a baby boomer, I saved hard and went without a lot to own my first home at 25. Not only is that the opposite now, but many Gen Y’s today are given their first car by their parents and also many parents now help their children to get their first home by funding their deposit and/or going guarantor.
    mIKER
    22nd Jun 2016
    2:57pm
    Many of the stories about struggling when first married reflect our own circumstances, but ask your selves this question "if you had access to easy credit would you haver taken it?"
    The answer for most of us and later generations is yes. Times have changed. Easy credit and a trillion dollar national debt has boosted the economy, lifestyles and so on. It may not have made our lives any better though!
    Sundays
    22nd Jun 2016
    3:24pm
    I agree mIKER. We had to save because there was no other option. Getting a personal loan was almost as hard as getting a mortgage. Now, many Gen Y have multiple credit cards, interest free loans etc. We were married 6 years before we had the deposit for our first home, and did not travel overseas until our children were adults. Stuck at jobs we didn't always like and had this huge burden of responsibility we placed on ourselves. I sometimes think it we could have relaxed more and worried less, something we could learn from Gen Y.
    KB
    22nd Jun 2016
    2:59pm
    Life was simpler and easier for baby boomers. Cost of life in general was cheaper compared today/ It was easier to get job and to save for a house. Baby boomers went through university so do not have a massive debt to carry around like Gen Ys
    Sundays
    22nd Jun 2016
    3:32pm
    KB not the boomers born before Whitlam was elected. In the 60s and early 70s University was only for those from wealthy families unless you could get a scholarship to Teachers College. Many would have loved a HECS arrangement. Being a girl from a poor family, I had no hope because my parents wanted me to go to work and help out by paying board. $20 in 1969, $5 for mum, $5 she insisted I save, $5'for transport and $5 for me! I did However go to university in the 80s and I thank Gough Whitlam to this day
    Anonymous
    22nd Jun 2016
    8:26pm
    How many baby boomers went through university, KB. None I knew could afford to finish high school. University might have been cheaper, but getting there was impossible unless your family was quite well off. Kids left school at 15 and went into low-paid jobs that they were trapped in for life. I'd have given my eye teeth for a degree and a HECS debt.
    Old Geezer
    22nd Jun 2016
    10:15pm
    I was offered a job after leaving school but I was also offered a scholarship for university. Uni scholarship paid more than the job so I went to uni.

    I then got offered a casual job as a public servant during my uni holidays and was then offered another scholarship to do a second degree. So I become a student for 5 years with a casual job as a public servant. Upon completion of the degrees I was made redundant from the public service.

    I was then offered a further scholarship to do a PHD. But I had had enough of uni so I packed my bags and went backpacking for the next year or so until I ran out of money.

    By this time they were looking for people to program computers etc For the fun of it I decided I'd sit the test to see if I was suitable. On the way out I was asked where I was working and when I could start if they offered me the job. I said jokingly tomorrow. By the time I had got back to where I was living they had rang to say that I was to start at 9am the next day.

    So I had spent 5 years at uni and now found myself in a career that had nothing to do with what I had studied at uni.

    Yes Rainey even back then it was possible to go to uni without having a well off family to support you.
    Charlie
    22nd Jun 2016
    10:21pm
    I went through university when the fees were low but the education allowance was $4 a week less than the dole.
    I was 31yo in my first year and only had a 4th form education to start with.
    I had to learn to use a calculator because they didn't exist during my school days.
    It took me the best part of 6years counting the bridging courses before I started.
    It gave me 20 years employment in a well paid job. Not bad for some security and good times, but too late in life to get bogged down with housing loans.
    Old Geezer
    22nd Jun 2016
    10:36pm
    No calculators during my school or uni days either. I needed one to help with my computer jobs but they weren't yet available in the shops. Someone said you could buy one out of a storage unit down an alley. So I found the rather dubious outlet and for about $50 I got myself a 4 function calculator. (You could rent a house for less than $50 at the time so it was very expensive.)
    Anonymous
    23rd Jun 2016
    6:48pm
    Old Geezer, you miss the point entirely. Scholarships were only available to those whose families could keep them at school long enough to qualify. Those who had to leave school and contribute to the family income at 15 had no hope. Not only did they generally not qualify for a scholarship until further advanced in their schooling, but many could not accept a scholarship even if it was offered because it didn't allow them to continue living at home and paying board to help the family budget.
    Oldman Roo
    22nd Jun 2016
    3:40pm
    Unfortunately there are too many variables to consider but there is one major difference from the late 1950,s and 60,s , the income was a lot lower and the money we could put away for retirement is not anywhere near enough for what one needs in these days . Not that this is in any way recognised by the Government and some Liberals have even indicated my generation were financial failures because we have to line up for welfare .
    I still remember purchasing a life assurance in the 60,s and the great selling point by the Salesman was that after it matures in 30 years , I would be able to buy a new Holden car for cash.Yes and I lived long enough to claim the payout except the money would no longer buy a car and was only just enough to buy the 4 wheels only .
    When I compare present salaries , there is no doubt , if the young people lived a frugal life , like we did , they would be a lot better equipped to meet the high costs of financing retirement . But if our our Politicians continue to mismanage the country the cost of retirement will also get out of hands for them .
    Funny face
    22nd Jun 2016
    3:53pm
    Same ! The only new thing we had was a bed! Bought house two years later, bare floorboards and if you wanted to watch ( the second hand used) t.v you took a kitchen chair! We " gradually" acquired things. Wives generally didn't work once children came along and rake out was a luxury , maybe every couple of months of fish and chips!) . Normally owned by a lovely gird working Greek family! We didn't go out on " girls nights" ( who had ever heard of such a thing anyway! The first time we went to the pictures together ( apart from taking children) was 1981, or whenever Paul hogan did crocodile Dundee! There were no " expensive" presents ( went to house or children). Nights " out" we're meals at either your home or others and when children went to bed you played cards! The younger ones would have a " fit"! To be fair, there wasn't the " stuff" to buy like there is today but we still wouldn't have bought it until money " saved"! We scrimped, we saved, we gradually acquired and, guess what, we were happy! Can a lot of them say that with all their gadgets, going " out" to hotels for " drinks night" ( girls by themselves, horror!). It wouldn't gave been thought of! Or at least, not in the circles we had! It was all for the future! Now they have to have the " future" now! New everything! Cousins sons wife wouldn't shift into house until carpet, air conditioning, new white goods etc! How many years did it take all of us to get that far? In our case, when they were all teenagers! Get priorities! You can't have everything and then " grizzle" we had it easier!
    niemakawa
    22nd Jun 2016
    4:12pm
    All statistics, studies and surveys can be manipulated to present the case that the author wants. I don't care , let every generation do it for themselves.
    mangomick
    22nd Jun 2016
    4:22pm
    Gen Ys would have more too if they threw away that mobile and their phone plan.
    Bes
    22nd Jun 2016
    4:40pm
    Most of us started work at 15 and soon got to realize what a quid was worth. In the day it was a 48 hour week 5 1/2 days per week.
    We were married in '67, I was 22 and my wife was 20. In those days we never had credit cards and dealt and paid in cash. The old '58 FC Holden served us well.
    Our first house was 2 1/2 bedrooms (the half bed was a sleepout on the verandah) with one bathroom.
    I had countless jobs, labouring, tractor driving (wheat belt) forklift driver, truck driver, bus driver, (both public and community service frail aged and disabled) Sterilization Technician RPH, Hospital Service Assistant (orderly) followed by Patient Transport (inclusive of stretchers).
    I retired at age 66 and lasted 2 months before I returned to RPH as a voluntary driver and also got a job doing bus tours once a week.
    I then got a job with a retirement company and drove a bus doing shopping trips for residents north and south of Perth.
    I finally retired 7 weeks ago suffering from double pneumonia at age 71 but am now fine.
    We go to the club twice a week.
    Yesterday I got a call and am taking a bus to Mandurah and then a river cruise with lunch. Pocket money!
    We do now have a debit card as instructed by our son who is a bank manager, who explained that times have changed!
    Our daughter and her husband have their own business.
    Our work ethic has been passed on.
    Yes we worked and achieved, raised a family and don't owe a cent.
    We constantly hear about how the Australian Aged Pension may come to an end and Pensioners may also be forced to sell the family owned home as the Government could run OUT of money.
    How come we never hear of the TRUE costs of WELFARE by bringing in refugees or of FOREIGN AID running out of money?
    When you think about it, a majority of the electorate WORKED, paid tax, paid a mortgage to buy their home while FUNDING the other TWO?
    TREBOR
    22nd Jun 2016
    10:46pm
    Well done, Bes!
    TREBOR
    22nd Jun 2016
    10:47pm
    Oh - I just hit 67 and am applying for jobs in my area.... got an 'in' with the local bowling club and might pick up some work driving their bus for tournaments...... maybe at night sometimes when they are busy with events etc.
    MD
    22nd Jun 2016
    5:30pm
    In answer to the question, "What do you think of the research findings" - not much. It's not worth the comparison due to both demographics (them & us) being incapable of changing places. Gen Y have to live life as they see fit, which Boomers bye & large, have little influence on. Conversely Gen Y, in the absence of time travel machines, cannot live the life as experienced by boomers. Each group lived/lives contemporary to their times.

    Were I kid myself that I can understand the motives of social researchers and their ilk to study past generations, I fail to grasp what motivates them to draw parallels and comparisons to the current generations. It's tantamount to a provocation. What was the aim & purpose of the study ?

    The media would have us believe that the 'oldies' hold 'the bulk of the wealth'. So what ?
    Time will exact it's terrible toll on the aged and the transition period will see a transfer of all this purported wealth to the younger generations, unless the pollies and/or their minions find the means to get their grubby trotters/paws on it beforehand.
    TREBOR
    22nd Jun 2016
    10:49pm
    "unless the pollies and/or their minions find the means to get their grubby trotters/paws on it beforehand. "

    That's why I fervently hope that the major parties are both handed a thrashing in this election coming.... and are both in minority and need to negotiate with a host of well-informed and well-intentioned Independents....
    Gammer
    22nd Jun 2016
    6:39pm
    I am troubled by the fact that a university education seems to be an expectation these days. I didn't even know anybody at uni in the 60's despite having passed the 11+ exam and going to grammar school in Oxfordshire. All the young people I knew were either apprentices and/or going to technical school or training establishments. We need to encourage a return to apprenticeships and training our young people - to be earning a living and not having a huge debt when qualified is a great start.

    I also, as the oldest child in the family, gave my mother a third of my gross pay each week to help support our family of six. How many youngsters these days do such a thing?

    As mentioned by others, our first home was a small two bedroom cottage way out in the country and we gradually built up to a larger home over the years. Holidays were under canvas or in a caravan too....
    TREBOR
    22nd Jun 2016
    10:52pm
    I graduated high school at 15.5 years... destined for med school..
    but was left on my own at 16 and had to fend for myself. I took whatever job I could get.... $4 a week was good and the Army paid better so I joined at 17. Two years ago I started a medicine course - and had a heart attack... oh, well..... that's life....

    22nd Jun 2016
    8:19pm
    I don't believe this data. I've seen graphs that suggest precisely the opposite, BUT it's true in every wealthy country OTHER THAN AUSTRALIA. I think we are being lied to for political reasons, and the powers-that-be are relying on data from other nations to deceive the public.

    From an anecdotal perspective, I haven't come across a single Gen Y who isn't ten times wealthier than my partner and I were at a similar age, and much wealthier than 90% of similar age to us that those we knew.
    Radish
    22nd Jun 2016
    9:02pm
    I agree. I struggled to save all my working life and never had a home until I remarried and we purchased one together at age 46. Yes, I worked overseas for a few years but had little money to do much touring around at all.
    Today the young ones that I know of are always tripping off here and there and spend their money like there is no tomorrow.
    The amount spent on expensive lifestyle and clothing makes my mouth drop.
    They (yes I am generalising) want it all and dont want to wait and a great many expect their parents to help out financially; something I would never ever have contemplated. To ask my parents for money would, to me, have said I was a failure.
    TREBOR
    22nd Jun 2016
    10:58pm
    I find it amazing that on some international scale Australia is in the top ten as a 'wealthy country' - there are 700,000 people out of work and about times two under-employed and having no future.. while others have lovely single or dual income families that are reaping all the wealth... all this out of a workforce of around 12 million.....

    Anyone else see anything wrong with this picture? How do you describe a country as 'wealthy' when it cannot employ with adequate overall lifetime remuneration around a fifth of its workforce, and ensures, by its policy direction and attitudes, that a far greater proportion will have nothing in retirement, thus exacerbating the problem of poverty throughout life and inter-generationally?

    That may be a bit hard for some to follow.... it's not that hard, really... we are a Third World country that ensures, through government and business, that 'wealth' belongs only to a few.. and the many are peasants.

    Now vote 1 for me as Il Presidente.....
    bartpcb
    22nd Jun 2016
    9:43pm
    What a load of cobblers! The earlier generations were prepared to 'go without' in order to get their first home, and a lot of them went without a lot. The so called 'Y generation' want everything their parents have NOW got, and they want it now. At the same time they want their latte coffees twice three times a day, a take away or eat lunch at the local café, their mobile phone, their movies, etc etc. "We want it all and we want it now", describes the whingers accurately. Having said that, I know a lot of 'Gen Y' who are workers and are head down nose to the grindstone, and guess what most of those have got or are getting their own homes.
    Alex
    22nd Jun 2016
    9:51pm
    This is comparing apples with oranges. Gen Y on average stay in education ten years longer than the baby boomers. Up to 1980 only about 3% of the population went to University. It was possible to train for nursing, the police force, banking and numerous other jobs after leaving school at 15. Today these and many more jobs require degrees and often post graduate study. By 25 the baby boomers on average had spent up to 10 years in the work force which allowed them to save earlier for their homes etc. Today's graduates start on much higher salaries and eventually catch up.
    *Loloften*
    22nd Jun 2016
    10:02pm
    McCrindle research load of crap, appears to not fully consider enormous financial burden on Baby Boomers over 64+ re: 17% mortgage interest rates (18% on investment properties) + huge inflation rates on all purchases including food. Many of us are now Age pensioners - either just b/c can & love babysitting our grandkids/want to help, huge savings to Govnm/t. Where are all other Grandmas now - perhaps needing to work much longer thx to now later retirement age (they don't know what they're missing). Also, many of us have gifted heaps of our retirement funds most lovingly in past (mine approx 2 decades ago) to our children to ensure they get into own properties/house market asap. Reckon we should be treated with far more respect from both major Parties, not enamoured of either. I've e-mailed all 12 senate candidates re policies, only half have replied so far. I want "real & compassionate" for all ppl including we "Babyboomers," in Govnm't. Sooo fed up with the usual "spin" - no mention of Age Pensioners both bot major parties. Minimum single wage is now $230 less than Age Pension!?
    *Loloften*
    22nd Jun 2016
    10:17pm
    Opps, no mention of Age Pensioners by both major Parties so have e-mailed all 16 Independent Senate Candidates re their Policies et al. So far 7 replies - just one not sounding too good. Delight in pis*sing Coalition/ALP/Greens off by selecting 12 of 'em.
    Alex
    22nd Jun 2016
    10:58pm
    Good work Loloften
    *Loloften*
    22nd Jun 2016
    10:41pm
    Correction - minimum single wage is now $230+ more than Single Age Pension!! Sorry - couple of too fast typos/errors!!!
    john
    23rd Jun 2016
    8:02am
    boomers saved, gen y spend , even if they have no cash
    *Loloften*
    24th Jun 2016
    10:10pm
    Sadly too true John - & I'm not enamoured of Internet & Mobile phones altho' have both, so damn time consuming when should be doing what used to many yrs ago re: cooking for kids/grandkids; growing vegies to share;weeding garden; maintaining cleanness in home bit more (adorable long-haired Pup sheds heaps) altho' still babysit youngest super gorgeous grandkids often - saving Fed Govn'mt heaps!!
    Supernan
    23rd Jun 2016
    1:20pm
    I get tired of saying this but many of the oldies now on Pensions are NOT baby boomers. Baby Boomers were born after world war two. We are the forgotten generation ! The WAR BABIES !

    We were born with our dad's mostly away at the war. There was food rationing & as we were in London there were blackouts, air raids, bomb shelters.etc. After the war there was a shortage of everything & men could not find work. So we grew up making do, going without, wearing hand me downs.

    We started buying land as soon as we got engaged at 18. We bought our first home in 1965 - for 1000 pounds. At that stage I earned 6 pounds a week. We bought a table from our previous landlord & still have it. Did up the house top to bottom & sold it in 1970 for 2000 pounds.

    In Qld we bought our next house in 1969 & furnished it mostly from Auctions. Interest rates were around 17%. In a few years we also started paying off the block of land we now live on as well. By the time we built here interest rates were around 20 to 26%.

    So dont tell us the war baby generation had it good ! Why are we always forgotten ?

    23rd Jun 2016
    6:49pm
    Wait for the next attack on retirees' incomes and savings. This kind of BS is merely political propaganda circulated to justify stripping older Australians of their retirement savings.

    23rd Jun 2016
    8:18pm
    There's a graph at http://i.crackedcdn.com/phpimages/photoshop/7/0/6/546706_v1.jpg that suggests the truth is precisely the opposite of what McCrindle claims. I wish I knew where the data behind that graph came from, but I'm certain it's more accurate than McCrindle's politically-biased falsehoods.
    Blossom
    23rd Jun 2016
    11:29pm
    In 1983 babyboomers ( a couple with a newborn) I know saved a deposit and bought a home & land package. Lowest Interest was..... 22%. A very basic 3 bedroom home in what was then a very outer suburb. No airconditioning or heating. No built-in robes. No roof or wall insulation. 2nd hand furniture including fridge
    *Loloften*
    24th Jun 2016
    10:25pm
    Blossom, me too - can't fathom we 25% of the population being so damn ignored by both major Parties (+ the Greens). My Senate vote card will be numbered 1 - 12 with all Independents. I also live in an unsecure Coalition seat - have investigated all (including above Senate candidates) & ALP & Coalition will be last 2 on my card. I want a few real ppl representing me.
    retroy
    27th Jun 2016
    9:29am
    I thought we did this subject 6 months ago.
    Every boomer has detailed how they struggled and in our case we went to buy second hand furniture at auction, compared with the generation of today.
    What is not taken into account is the proliferation of government cost and the greed of banks and merchants compared with 50 years ago.
    All of these spongers were either not around, or I did not see them, so they made no inroads into my economic circumstances. Get rid of the bludgers and every one could be better off.
    Virginia
    27th Jun 2016
    2:04pm
    Its rubbish what's said about not being able to get into the housing market now. They all want houses better that Boomers houses. All the newest ideas and and the size!!!!
    They want the nights out they want the take aways; they have the holidays overseas. The kids all do Ballet Footy and all the other after school activities instead of walking to school and going to the movies the last day of the school holidays..... Give me a break its all choices and priorities.
    No different to the pensioners who can't lived on the pension. choices, priorities or stay working.
    We live in the best country in the world with every opportunity get out and make opportunities. There are no barriers, race, religion, culture, casts or age, options are all there.


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