Stop whingeing, Gen Y. You’ve got it pretty good

WE constantly hear millennials moaning that older people are better off, but figures show that in Australia, they’re far from in crisis.

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WE constantly hear Gen Y complaining that older people are better off, but figures show young people are far from in crisis in Australia.

This country is one of the only wealthy nations where millennials’ disposable income is growing faster than their parents’ stash.

On Monday, the Guardian published a report on how older people in almost every wealthy country were seeing a far higher growth in their available spending money than those in their twenties.

In the UK, US, Canada, Germany and France, millennials’ disposable incomes had depleted over the past 10 years, the Luxembourg Income Study shows.

But there is one notable exception: Australia.

Here, if the head of your household is a Gen Y, your disposable income is likely to be growing faster than any other age group. So is it time to stop whingeing?

MORE MONEY, MORE PROBLEMS

The average millennial household in Australia brings home an income of $113,152, leaving them with a disposable income of $92,454 a year, according to the Australian Bureau of Statistics (ABS). It’s not exactly the poverty line.

“Generation Y has seen an increase in net worth of 5.15 per cent in 2013-14, with the median average going from $261,000 to $268,000, a modest increase,” social researcher Mark McCrindle told news.com.au. “We’re not going backwards, as in a lot of countries.

“We’ve had wage growth and those lucky enough to be in the property market have seen asset growth.”

Gen Ys, born between 1980 and the mid 1990s, are likely to have decent-paying jobs and be climbing the career ladder, and even some savings, while not having to sacrifice that daily coffee — like most of the nation.

“Every household age group has gone up in net worth,” said Mr McCrindle. “If everyone is moving forward, that’s a great thing. Australia’s doing OK.”

WHY SO LUCKY?

Perhaps most relevant is the fact Australia did not go into recession during the global financial crisis. Even though growth may have slowed, we still haven’t faced a recession and seen our economy go into decline.

“Importantly, wages and property prices have gone up while general living costs — petrol, groceries, public transport — have stayed about the same,” said Mr McCrindle. “It’s been a good few years, economically.”

At present, the growth for Gen Y is staying about level with the consumer price index (CPI) and Mr McCrindle thinks that trend is likely to carry on. “I think they’ll continue to keep even, to keep their heads above water.”

BUT THEY’RE STILL BETTER OFF

Despite faster growth in disposable income, millennials still don’t have as much as either Generation X (aged 36-50) or the Baby Boomers (aged around 58-70), and that gap looks likely to widen.

Baby Boomers are in their peak earning years, and are more likely to own a property that has grown in value significantly since they bought it, along with other assets. They are also set to receive generous retirement benefits packages that probably won’t exist once younger people reach their age, as the population ages.

Their households are likely to be worth $1.2 million, while even over-75s will have an average of $850,900 in earnings and assets (compared to millennials’ $268,000).

“Gen Y is keeping level with CPI but Baby Boomers are going well beyond it, and getting an increasingly large share of the pie,” said Mr McCrindle. “Gen Y won’t reach the same watermark.

“Will they increase their economic footprint? Yes, it will get larger, but it will never double or triple. Baby Boomers have benefited from a very advantageous tax system and modest taxes. They are unique, an economic miracle.”

So while millennials in Australia are far from in crisis, you definitely don’t have it as good as mum or dad. And you never will.