Born in 1962, I find myself reflecting on the notion of generational luck. The question of whether I, as a late baby boomer, am part of the luckiest generation alive is an intriguing one. The argument that my generation has done better than those that followed has been making waves, and it got me thinking. Is it true that we are the beneficiaries of a unique set of circumstances? Let's delve into three key areas: higher education, housing, and pensions.
The Student Loan Conundrum
One area where I believe there is an element of truth to the claim is in the realm of higher education. The English student loan system, while not without its flaws, has enabled a significant portion of my generation to access university. The fact that many of my schoolmates never had the opportunity to borrow and study is a stark reminder of the privilege I enjoyed. However, the system is not without its complexities. While younger graduates face substantial debt, the state might actually be making a profit from them. This raises a deeper question: is the system designed to benefit the government more than the students? In my opinion, the student loan issue is a nuanced one, and it's essential to consider the broader context of increasing university participation rates.
Lucky London Buyers
Turning to housing, I can't help but feel a sense of privilege. Buying a flat in London in 1988 was a decision that has served me well. The city's transformation from a declining hub to a global powerhouse has led to substantial capital gains. However, this is not a universal experience. Many of my younger colleagues struggle with housing affordability, and the rising prices have created a divide within my generation. The timing of my purchase was propitious, and I acknowledge the luck I had in that regard. But it's essential to recognize the inequality within my generation, especially when it comes to regional differences in housing gains.
Gold-Plated Pensions
Pensions are another area where I believe my generation has been fortunate. The baby boomers benefited from defined benefit pension schemes, which provided a sense of security and generosity. While these schemes have become less common, the state pension has become more robust, thanks to the triple lock policy. However, not everyone in my generation had access to these gold-plated pensions. The shift to defined contribution schemes for millennials and Gen Z has created a sense of uncertainty, and the difference in employer contributions is striking. It's a reminder that luck can manifest in different ways, and not everyone in my generation has had the same opportunities.
The Spluttering Growth Engine
In conclusion, while I acknowledge the luck I've had in certain aspects of life, I believe it's essential to consider the broader context. The grand disappointment of the last two decades has been the decline in per capita economic growth. The lack of growth has led to a shared sense of material deprivation, and it's crucial to address this issue. The baby boomers may not be the richest generation, but we have been blessed to live in a country that seemed to be on a growth trajectory. It's a reminder that luck is not solely about individual circumstances but also about the broader economic environment. As we navigate the complexities of generational fairness, it's essential to work towards a more equitable future, one that ensures growth and prosperity for all.
