Saturday 24 March 2018

Older generation now feel pain of recession

Sarah McCabe

Sarah McCabe

Though young people might have borne the brunt of the recession, it appears that older people are finally feeling the pinch.

New research shows that no age group feels it is currently saving enough for the future. Satisfaction with how much is being put away every month is less than a fifth amongst both under 50s and over 50s.

There's almost an element of schadenfreude to this news – until now it appeared that younger people had shouldered most of the burden of the recession – in virtually every aspect.

A recent study found that over-45s increased their spending by 31pc between 2004/2005 and 2009/2010, while the younger age group cut spending by a fifth in the same period.

And under 50s are still clearly suffering more.

While older people are most concerned with the returns they're getting on their savings in light of DIRT tax increases and interest rate cuts, under-50s can't manage to save at all.

Unfortunately, government policy isn't likely to take the savings concerns of either age group into account any time soon. This is because the Government needs us to spend rather than save. Private money accumulating in bank accounts does nothing for the economy.

Tax cuts or debt restructuring policies that would significantly reduce the discretionary income challenges facing young people look unlikely. So too does a reduction of DIRT tax.

It appears saving for a rainy day will have to wait, for everyone.

Irish Independent

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