An ‘enjoy now, worry later’ mentality could spell economic pain for young Aussie workers
Experts say young Australians now have an “enjoy now, worry later” mentality when it comes to their finances, leaving them vulnerable if the nation’s economy goes south.
Though the narrative from today’s crop of young workers would suggest otherwise, times are good for today’s dubbed “golden” generation. Compared to the Boomers and early Generation Xers, wages are three times higher, tax rates are lower, interest rates are a third of what they were and employment is just above half the level it was.
According to Mark McCrindle, this lack of exposure to a sustained economic downturn has left those aged under 43 wrapped in a “safety net syndrome.” That is, they expect government or their parents to intervene and bail them out if economic misfortune comes knocking.
“They’re less resilient then the older generation, who certainly have been through more economic cycles,” McCrindle explains.
“Nobody wants tough times economically, but the upside is that it does build fortitude, it does build work ethic and delayed gratification and that savings mindset. A little bit of that is needed these days.”
“Back then you had to create yourself, things weren’t as likely to be handed to you.”
“You would save up, you would get the job, you would retire and then you’d go on holidays. But these days, it’s almost as if we take some of those retirement years and sprinkle them through the twenties and thirties.”
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