The author, born in 1962, reflects on whether the late baby boom generation was particularly lucky, focusing on three key areas: higher education, housing, and pensions. They argue that while some aspects of their generation's luckiness are undeniable, it's important to consider the broader context and the challenges faced by younger generations.
In higher education, the author acknowledges the unfairness of the student loan system, which has become a significant burden for younger graduates. However, they also point out that the system was designed to make higher education accessible to more people, and that the current structure aims to provide fairness between generations rather than across them. The author also highlights the role of better-off graduates in subsidizing less well-off students, a dynamic that has changed over time.
When it comes to housing, the author admits to enjoying an unearned advantage by buying a flat in London in 1988, which later soared in value. They argue that the timing of their purchase, during a transition from high to low interest rates, was propitious. However, they also note the significant inequality in the UK housing market, with London and its catchment area experiencing much bigger gains than the rest of the country. This has made it much harder for younger generations to buy or rent property.
In the area of pensions, the author recognizes the baby boom generation's good fortune. They benefited from generous defined benefit pension schemes offered by employers, which provided a substantial and secure retirement income. In contrast, younger generations now accumulate savings in personal pension pots, with employers contributing much less. The author acknowledges the unfairness of this situation but also highlights the historical context, noting that defined benefit pensions were a minority luxury before 1997.
The author concludes by emphasizing the importance of recognizing the luckiness of some within the late baby boom generation, while also acknowledging the challenges faced by younger generations. They argue that the grand disappointment of the last two decades has been the decline in per capita economic growth, which has led to a shared sense of material deprivation. To address intergenerational equity, the author suggests that restarting the growth engine is essential.
