How has your in­come fared since the cri­sis? / Ac­cesing tax-free cash from a pen­sion

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Mil­len­ni­als have been hard­est hit by the fi­nan­cial cri­sis, with their wages be­ing af­fected more than older gen­er­a­tions, a new study has found.

The In­sti­tute for Fis­cal Stud­ies re­port looked at how dif­fer­ent age groups have fared since the global fi­nan­cial cri­sis, sparked by the col­lapse of Lehman Brothers 10 years ago.

The re­port found those in their 20s are earn­ing 5% less than those in their 20s in 2008, while those in their 30s are earn­ing 7% less than their coun­ter­parts were earn­ing a decade ago. This com­pares to those aged 60 and over, who are earn­ing 1% less than those in the same age group 10 years ago.

In mon­e­tary terms, those in their 30s are earn­ing on av­er­age £2,057 less than 10 years ago, with an av­er­age salary of £26,442. This com­pared to those aged over 60, whose av­er­age earn­ings have fallen from £18,766 to £18,637.

A DIF­FI­CULT DECADE Jonathan Cribb and Paul John­son, au­thors of the re­search, say: ‘Along­side poor earn­ings growth and govern­ment pol­icy de­ci­sions which have tended to favour the old, this has con­trib­uted to a decade dur­ing which the liv­ing stan­dards of young peo­ple have done much less well than those of older peo­ple. For ex­am­ple, the af­ter hous­ing costs in­comes of those in their 20s are still be­low where they were in 2008, whereas for those over 60 they are al­most 10% higher.

‘We should never stop re­mind­ing our­selves just what an as­ton­ish­ing decade we have just lived through, and con­tinue to live through… record low earn­ings growth, record low in­ter­est rates, record low pro­duc­tiv­ity growth, record pub­lic bor­row­ing fol­lowed by record cuts in pub­lic spend­ing.

‘On the up­side em­ploy­ment lev­els are re­mark­ably high and, in spite of how it may feel, the gap be­tween rich and poor has ac­tu­ally nar­rowed some­what, but the gap be­tween old and young has grown and grown.’

RE­CRUIT­MENT SIT­U­A­TION What’s clear from the re­search is that many of those in their 20s were en­ter­ing the job mar­ket for the first time just af­ter the fi­nan­cial cri­sis, when it was dif­fi­cult to get a job as so many po­si­tions had been cut or com­pa­nies weren’t hir­ing.

As a re­sult, those in­di­vid­u­als were paid less than their age group had been pre­vi­ously. This, cou­pled with the fact that wages across the board have stag­nated over the past decade, means they are still earn­ing less now.

Dur­ing that time, mil­len­ni­als

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