Youngest and oldest 'hit harder by recession'

15/07/2009

The effect of the recession on people in different age groups in the UK has been analysed by PricewaterhouseCoopers (PwC), a big accountancy firm.

According to the report, 18 to 24-year-olds have been hit hardest by rising unemployment, with the jobless total rising to a 12-year high of 7.2 per cent recently.

Meanwhile, people aged over 50 were found to be most vulnerable to the recent collapse in house prices.

The 15 per cent reduction in the value of the typical home has had a particular effect on people who have taken equity release loans against their property - who tend to be older.

The PwC survey suggest that people in the middle age groups have been less badly affected than their peers.

Steve Denison, northern chairman at the firm, said: "While no age group is fully immune from the adverse effects of the downturn, our analysis suggests that people in their mid-20s to late-40s will on average have relatively better financial prospects through the recession than younger or older generations.

"This age group will be financially fitter because they have a relatively lower exposure to unemployment and if they loose their jobs then they have a greater probability of finding another one. They may also benefit the most from low mortgage interest rates while older savers will lose out."

Tags; Current UK Economy, Retirement Money Problems, Recent Graduate Debt,

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