Exactly. And living in the North East makes it even harder, given the lower wages and fewer opportunities here.
I’m fortunate that I made some good financial decisions when I was younger, despite being relatively poor myself and working in a low-paid role. I bought my first home at 22 and a second property for my in-laws at 28. I’ve since managed to secure a reasonably well-paid job, and between that and the equity in the second property, I should have a comfortable retirement.
But we’re hardly talking about enormous wealth. The second property is worth less than £150k and generates around £500 a month in rent. I’ll be comfortable, but I certainly won’t be living extravagantly, and I doubt I’ll enjoy as many holidays as some of my older relatives have, despite having made financial decisions that should arguably have put me in a stronger position. And that’s really the point. My personal circumstances don’t change the wider reality for my generation.
For people from working-class backgrounds today, the opportunities to build a comfortable retirement are increasingly limited. When wages barely cover living costs, where is the spare money supposed to come from to build a pension, save or invest? Homeownership is significantly lower, meaning many will face paying rent throughout retirement rather than owning a home outright.
I was fortunate enough to get onto the property ladder young, even on a low wage. That same opportunity is increasingly out of reach for people today. Just because some of us managed to get ahead doesn’t mean we should ignore how much harder it’s become for everyone else.
And particularly those who are pensioners currently, should show more empathy and understanding towards the younger generations. Life is getting harder, and I really wouldn’t want to be in my son’s generation where it is 30k to attend uni, 60k if you don’t live at home. You end up with low job prospects even with a degree, especially anywhere outside of London (unless commutable) and one or two other major cities. And suddenly you are mid 20s still at home and don’t know when you’ll save up for a house deposit.