Millennials could become the first generation to earn less on average than the generation before them.
Studies from The Resolution Foundation have found that those under the age of 35 earned £8,000 less on average in their 20’s than Generation X. This would make millennials the first generation to earn less in their lifetime than their predecessors did.
What are Millennials?
Millennials are defined by The Resolution Foundation as those born between 1980 and 2000 and Generation X as being born between 1966 and 1980. We have previously looked at the short term financial mind set of millennials, and with this latest research suggesting that earning power will be less than the previous generation, millennials could face a less prosperous retirement than current retirees. Recession and increased living costs has reduced young people’s living standards, and without necessary financial planning, the gap in living standards could be further accentuated in later life.
More information on the wage gap of millennials can be found on the BBC website.