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A few years ago, my co-blogger The Accumulator argued [3] that fears for the future of the state pension were overblown, writing:
Governments stay in power by racking up achievement points with their supporters, neglecting those they cannot court, winning the spin wars, avoiding catastrophe, appearing more credible than the opposition, and kicking the really toxic cans down the road.
Your pension is protected by that political nutshell.
Perhaps it’s because they’ve grown up in an era of almost continual political upheaval, but Gen Z is not so sure. When you’ve seen your birthrights and much of your prosperity chucked overboard [4] for a handful of famously hard-to-find magic beans, watched six UK prime ministers fall in a decade, and witnessed a cage fight held [5] on the lawn of the White House, your political nutshells no doubt crack different.
In his early 20s, Joel tells the BBC [6] this week that:
“I don’t believe that I’ll be a recipient of a state pension. I know a lot of people my age don’t think they’re going to be… There just won’t be enough money.”
Meanwhile 27-year old Conor rightly noted that “the goal posts keep moving”, adding:
“At the minute I’ll be 68 by the time I can retire, but I do think I’ll be probably closer to 75, if I’m honest.”
The BBC article [6] is an unusually deep dive into how state pensions are seen by those still half a century from – potentially – receiving them.
Never mind the bollocks
We hear far more often from older generations about pensions – typically in uproar when, for instance, the sustainability of the triple-lock on state pensions is even questioned.
Meanwhile Gen Z quietly suspects that it will have to foot the bill.
It’s easy to scoff when a 20-something says they’ll invest in crypto instead of a workplace pension. But there’s a sort of everyday nihilism revealed here, too.
I’m from Generation X, the famously fatalistic mini-generation of slackers that (at the margin) worked McJobs [7] – at least until the 1990s tech boom got going and we too got religion about capitalism.
Until then, those of us who thought about it suspected we’d be left behind.
But looking back – not least from the other side of a two-decade long house price boom that took homes from a doable three-times income to a bonkers ten-times-plus – our economic concerns seem modest.
And at least the doomed youth of the late 1970s had the Sex Pistols making headlines for them.
Gen Z turns to ChatGPT for comfort. And we all know it’s coming for their jobs, too.
Have a great weekend.
From Monevator
Help! My passive fund is aggressively tech focussed – Monevator [8]
The Living Is Yield-y model portfolio: one year update – Monevator [9] [Moguls [2]]
From the archive-ator: Can dogs and FIRE go together? – Monevator [10]
News
Britons see sharpest drop in wealth of any developed nation since pandemic – T.I.M. [11]
Halifax brand to be scrapped after 173 years – BBC [12]
Interest rate cut ‘off the table for now’ says BOE’s Bailey – This Is Money [13]
‘Sh*tloads to come’: London takeover spree set to accelerate – City AM [14]
Three in five homes listed in January have failed to sell… – This Is Money [15]
…as UK house prices stall for second straight month – Guardian [16]
How scam refund rules are reducing fraud – Which [17]
Motorists face further delays to £9.1bn car finance refunds – This Is Money [18]
NHS to reward people who walk 30 minutes a day – BBC [19]
Hedge funds BlueCrest loses £200m tax battle with HMRC – Reuters [20]
[21]
Bubbles or regime-shifting in gold and Bitcoin? [Log scale] – Econbrowser [22]
Products and services
Disclosure: Links to platforms may be affiliate links, where we may earn a commission. This article is not personal financial advice. When investing, your capital is at risk and you may get back less than invested. With commission-free brokers other fees may apply. See terms and fees. Past performance doesn’t guarantee future results.
Hargreaves Lansdown [23] launches table-topping 4.5% cash ISA – This Is Money [24]
The cheapest ways to get Wimbledon tickets – Be Clever With Your Cash [25]
Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct through this affiliate link [26]. Terms apply – Charles Stanley [26]
Co-Op Bank slashes fees on spending abroad – This Is Money [27]
Santander switch offer: £180 and a £45 Amazon gift card – B.C.W.Y.C. [28]
The cheapest mortgage lenders in June – Which [29]
Get up to £200 cashback when you open an Interactive Investor [30] SIPP. Terms and fees apply, affiliate link – Interactive Investor [30]
Chip shortages set to push up prices for electronic devices – This Is Money [31]
Does marriage affect your home insurance bill? – Which [32]
Homes for sale with kitchens that open on to gardens, in pictures – Guardian [33]
Comment and opinion
Should a fund manager invest their own money differently? – Behavioural Investment [34]
“We had packed lunches every day for 10 years and retired at 40” – BBC [35]
Chauffeur knowledge – A Wealth of Common Sense [36]
The ins and outs of withdrawing a pension early – Be Clever With Your Cash [37]
The cost of status – Young Money [38]
Alternatives in a portfolio: Role, risk, and realism explained – Vanguard [39]
Retirees need a plan ahead of a potential lost decade – Morningstar [40]
Is $5m in Treasury bills enough to be set for life? – Of Dollars and Data [41]
A dirty dozen – Quietly Saving [42]
Managed futures ‘crisis alpha’ is compelling – Tax Alpha Insider [43]
Wall Street is becoming crypto – All Star Charts [44]
Another AI maybe-bubble mini-special
Yes, this market is all about AI stocks… – Morningstar [45]
…and what history tells us about the AI boom – FA Mag [46]
Scottish Mortgage: Tech run can continue with ‘unreasonable prices’ – Trustnet [47]
Naughty corner: Active antics
Don’t quit drinking, don’t quit value investing – Lee Roach via X [48]
When information is no longer the edge – Enterprising Investor [49]
The case for value over growth is building – Apollo [50]
When PE firms borrow to fund ‘skin in the game’ – PitchBook [51]
Social media causes coincident bubbles across different assets [Research] – SSRN [52]
Embracing business failure mini-special
Failure as a competitive advantage – Investment Masterclass [53]
Winning a game of failure – Vixology [54]
Kindle book bargains
The Trading Game by Gary Stevenson – £0.99 on Kindle [55]
Alchemy by Rory Sutherland – £0.99 on Kindle [56]
What’s Your Dream? by Simon Squibb – £0.99 on Kindle [57]
How to Have an Epic Retirement by Bec Wilson – £0.99 on Kindle [58]
Or pick up one of the all-time great investing classics – Monevator shop [59]
Environmental factors
Are crows really our friends? – Audubon [60]
The corals that shouldn’t exist – Biographic [61]
Lundy Island seabird population soars after rat removal – Independent [62]
Robot overlord roundup
We need a way to prove personhood online – Noema [63]
Ford rehires human engineers after AI fails to match quality checks – BBC [64]
Meta joins SpaceX in selling spare compute – Semafor [65]
AI slop is starting to overwhelm engagement platforms – Bloomberg via MSN [66]
Not everyone is happy to see delivery robots in the UK – BBC [67]
Stiffed twice by the AI bubble – Simple Living in Suffolk [68]
Gen AI creates delicious, sustainable, and nutritious burgers [Research] – Nature [69]
Heavy AI adoption linked to more hiring, new study shows – Big Technology [70]
Not at the dinner table
New ‘No 10 North’ plan will rebalance power in Britain, says Andy Burnham – BBC [71]
Burnham also promises to ease cost of living pressures – Guardian [72]
The wheels are coming off Putin’s war – The Bulwark [73]
Trump’s financial disclosures reveal $1.4 billion in crypto earnings… – NBC [74]
…but the White House sees no conflict of interest – Citation Needed [75]
Florida is executing prisoners at a record pace – ProPublica [76]
Off our beat
The surprising power of simple predictions – Tim Harford [77]
Rips, a ghastly new digital Pokémon gambling game [Clue is in the name?] – Wired [78]
How Amsterdam invented the fire department – Works in Progress [79]
A beginner’s guide to cooking with beans – Guardian [80]
Why Scotland is no longer ‘the murder capital of Europe’ – BBC [81]
A super yacht armada left a marine graveyard in Miami – Bloomberg via MSN [82]
Communion [83] by JD Vance review: a strange, poignant book – Guardian [84]
Couple turn mid-terrace garden into a tropical jungle with poisonous plants – BBC [85]
And finally…
“As you gain more wealth, money solves fewer and fewer of your problems.”
– Nick Maggiulli, The Wealth Ladder [86]
Note this article includes affiliate links, such as from Amazon [87] and Interactive Investor [88].