FSC shines a spotlight on how young people think about the economy
That’s one of the key takeaways from a survey released yesterday by the Financial Services Council (FSC) which found that people aged 18-39 age group are more fearful of wage stagnation than any other age group and have little or no confidence that the New Zealand economy will improve in the next 12 months.
Of those aged 18-39, only 39% own their own homes, with 61% still renting. Apart from wage stagnation which is a concern for 68% of respondents, their main worries are inflation, house prices and interest rates. About 50% have received financial assistance from the “bank of mum and dad” to buy a property and their savings rates are low: only half could find $5000 within a week in an emergency.
Laurie Kubiak, the chairman of Trustees & Executors which helped sponsor the survey, said the pandemic had exacerbated the predicament of this age group as it would be up to them to “find a way to pay back the government credit card”. It was a rock that had been placed on the backs of young people, Kubiak said, and many would find it easier to simply go overseas.
The pandemic had shown how much New Zealand has relied on immigration to provide liquidity to the labour market, he said. “I’m not expecting the next few years to be day at the beach.”
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