Financial future bleak for the iPod generation
Quite apart from the ignominy of being known as the iPod generation – because they are insecure, pressurised, over-taxed and debt ridden – it seems unlikely that the under 35s will even be in a position to afford their electronic namesakes.
They are facing a bleak financial future in which they will hand over almost half their salary to the taxman, according to a new study. The report, by the thinktank Reform, claims that millions of young people face a combination of rising debts, higher costs of living and low earnings growth. It also predicts that the average 20-35 year old graduate will face a tax burden of around 48%.
The report, The Class of 2006: a lifebelt for the iPod generation, says student debts and high taxes will leave recent graduates living on an average of £8,500, while the baby boomer generation lives like teenagers. “Young people are in danger of drowning under a sea of rising taxes and new compulsory payments,” said Andrew Haldenby, of Reform. “They need a lifebelt, in the form of a long-term commitment to public spending, discipline and tax reductions.”
The average student will leave university owing almost £15,000, and graduate debt is up 318% since 2000. Economists say the financial burdens on young people could strangle their business ideas and ruin the economy. The report says the iPods could be a crossover generation, unlikely to receive the final salary pensions and state aid, despite paying for today’s pensioners. Autor: Lee Glendinning