Adults today will be worse off than their parents

Economists warn that those born between 1960 and 1970 will be less well off than their parents were when they retired.

 

A report published by the influential Institute for Fiscal Studies found that taxpayers aged between 34 and 53 are currently being punished by the economic crisis.

 

It appears that the only hope for workers today is on an inheritance from parents:

 

“The economic fate of the 1960s and 1970s cohorts may be relatively dependent on the fortunes of their parents,” highlighted the report.

 

However, only 28% of people born in the early 1940s have had, or expect to have an inheritance, while the figures for those born in the late 1970s are much higher with 70%.

 

According to the IFS, the average household income of children born in the 1960s was typically £615 a week by the age of 40, but £570 a week for those born in 1970s – and it continues to decrease.

 

The institute concluded that “individuals born in the 1960s and 1970s have no higher take-home income, have saved no more previous take-home income, are less likely to own a home and are likely to have lower private pension wealth.”