Boomers step aside – Generation X is the new symbol of greed

As the politics of greed, envy and generational angst evolve, long-term solutions are needed to share Australia’s wealth fairly.

Older generations will constantly be accused of greed, often unfairly. Picture: iStock

The revelation hit me hard at a comedy show a couple of weeks ago.

The comedian, a purple puppet fond of foul language, declared to the audience: “anyone who is over fifty and owns more than one house is a” … well, I can’t print the next word.

Baby Boomers have copped criticism for many years over their free educations and huge asset collections – especially investment properties – while Generation Y, or Millennials, have been attacked for their perceived impatience, work ethic and smashed avocado on toast, but Generation X has largely been unscathed.

Gen-Xers, my generation, were born between the early 1960s and early 1980s – putting us in the crosshairs of the purple puppet comedian’s property investor attacks, which drew loud applause from much of the clearly younger audience.

Gen-Xers were born between the early 1960s and early 1980s. Picture: istock

Now I know how unfairly treated both Boomers and Millennials have felt in recent years.

Is Gen X the new target in the politics of generational greed and angst, or simply part of a pattern we will continue seeing Australians gradually get older?

For example, the maligned Millennials are now aged roughly between 40 and 50 and sensibly approaching middle age, and the first Baby Boomers are approaching 80 and often in no shape or mind to spend their kids’ inheritance on travel.

Money, money, money: is this how Generation X is now seen? Picture: iStock

There is always a strong contrast between the haves and have-nots, and Australia’s wealth gap is widening.

Gen Xers already hold two or three times as much wealth as Gen-Ys, but half as much as Baby Boomers. Until, of course, they inherit their Boomer parents’ assets.

Will today’s Generation Alpha – currently aged under 15 – be complaining about the wealth and greed of their Generation Y elders down the track? More than likely.

Greed is an easy accusation to throw around, usually at people who have planned for a better financial future and taken more risks with their money and their career.

Attacks on older property investors are nastier than those on share market investors, largely because landlords are the ones who push up the rents paid by younger generations.

Share market-related attacks aren’t aimed at individuals but instead at corporate Australia and companies’ mega profits – never mind that those mega profits go to older, wealthier Aussies.

What is the alternative to trying to build a property portfolio or pile of other investments? Live off an age pension in retirement worth $532 a week?

Centrelink pensions are paid by all taxpayers. Rental incomes received by investors are taxed – adding money to the public purse that is used to pay the pensions.

I don’t believe the famous 1987 line of fictional stockbroker Gordon Gekko that “greed is good”.

But I also don’t believe that older Australians should be labelled as greedy simply for trying to build themselves a better life using opportunities and strategies that are available to all.

The solution is less aggro and more sharing of wealth. Early inheritances will be important and changes to the tax system will be necessary, including taxing people more on consumption and less on income as a smaller proportion of workers will be available to fund the age pensions of people to did not invest and become self-funded retirees.

Wealthier members of my generation, and Boomers before us – should not expect that tax-free super after age 60 will continue forever. That only started in 2007 during the long resources boom.

In the future, older Australians with money will have to use it, whether they’re Boomers, Generations X, Y or Z, or even the Alphas.

Originally published as Boomers step aside – Generation X is the new symbol of greed