Millennials Have it Tough
A perfect storm is holding back wealth accumulation.
According to a study by Credit Suisse, Millennials are “not what one would call a lucky generation“.
Millennials have it worse than their parents. Finding a good job and being able to purchase a home is something most Millennials are having a hard time achieving.
What is a Millennial?
I find the ‘Millennial’ label a little strange because it spans from 1982 to 2000, which means they are lumping in 35 year olds with 17 year olds. That would mean my husband and his grade 12 students would be considered in the same category.
(Gen Xers span from the 1960s to the early ’80s. )
How Can They Be Successful?
The study by Credit Suisse says that Baby Boomers (1940s-1960s) are still occupying top jobs and that
Capital losses in the global financial crisis of 2008-2008 and high subsequent unemployment have dealt serious blows to young workers and savers. Add rising student debt in several developed countries, tighter mortgage rules after 2008, higher house prices, increased income inequality, less access to pensions and lower income mobility and you have a “perfect storm” holding back wealth accumulation[…] (pg. 27 of report, emphasis mine.)
The report also points out that things are worst for Millennials in North America but, “the ripples have extended to Europe and elsewhere.”
However, there is a minority of Millennials who are finding success. They are the ones who are “specializing in areas in high demand like high tech and finance” (pg. 31) But, most millennials won’t find themselves any better off than their parents, despite more education at a higher cost.
Back to the large age gap in the category, the report says, “On the basis of demographics […] the younger Millennials may expect an easier time than their slightly older contemporaries.” (pg. 28)
Concentrated Wealth
All of this is happening in the light of economic growth and wealth concentration: 36 million millionaires make up less than 1 per cent of the adult population but own 46 per cent of global household wealth. The other 3.6 BILLION people own 2.7 % of the wealth in the world. (pg. 2) Wow!
Read the full report HERE.
