Millennials Will Be More Broke Than Gen Xers

A British think tank presented the disappointing news this week that millennials are expected to be less financially well off than previous generations.

BBC reported Monday that the under-35 demographic would be the first generation to earn less than its predecessors, destroying the upward mobility trend from generation to generation.

Research from think tank Resolution Foundation found that millennials are earning less in their twenties than Generation X workers did. (Generation Xers are those born between 1966 and 1980, while millennials were born between 1980 and 2000.)

If millennials’ wages follow the same trajectory as Generation Xers, then average career earnings for them could be approximately £825,000 ($1,092,168).

Britain's new conservative Prime Minister Theresa May acknowledged this wage gap during her first week in office. She said there is a growing divide between a "more prosperous older generation and a struggling younger generation.”

Torsten Bell, the director of Resolution Foundation, told BBC, "We've taken it for granted that each generation will do much better than the last - earning more and enjoying a higher standard of living. But that approach risks looking complacent given the realities of recent years and prospects for the future."

The foundation’s research also demonstrated that under-35’s spend more money on rent than the previous two generations, and are less likely to be able to save enough money for a deposit on a house.

Bell also warned that the anticipated post-Brexit recession could push the wage divide between generations even further than already exists. 

Banner/thumbnail credit: Reuters, Jessica Rinaldi

View Comments

Recommended For You