The under-30 blues

The under-30s are the first generation for a century who can expect lower living standards than their parents, say researchers.

An ageing population, coupled with factors such as longer working hours and higher taxes, are having a huge effect on those starting out on the career ladder.

Not only are they being forced to rent because they do not have enough money to get started on the housing market, they are also missing out on many of the benefits of the welfare state enjoyed by their parents.

Many are starting work with huge debts due to the introduction of university tuition fees. The abolition of mortgage tax relief makes it far harder to buy a home.

And when the time comes to retire, this generation is likely to be on a pension far lower in real terms than the previous one.

Anthea Tinker, professor of social gerontology at King's College London, pulled together a collection of wide-ranging statistics and research to look at the way the ageing of Britain's population is affecting different generations.

In 1999 about 20 per cent of the population was over 60, but that is predicted to rise to 34 per cent by 2050 - with more than half that figure aged 80-plus.

Children are not being born in sufficient numbers, with live births per 1,000 women dropping from 91 in 1961 to 55 in 2000.

In the 25-29 age group, that fall is even more dramatic, dropping by nearly half from 178 in 1961 to 95 in 2000.

Professor Tinker said: 'Today's older middle-aged and elderly are becoming the new winners.

'They made relatively small contributions in tax but now make relatively big claims on the welfare system.

'Generations born in the last three to four decades face the prospect of handing over more than a third of their lifetime's earnings (in taxes) to care for them.

'Younger people may not have the same advantages of the welfare state as those before them, such as mortgage relief and free higher education.'