Today's under-40s worse off

My spiritual son, Graham, always jokes with his friends that the reason he can't devote more time to studying the Torah is because his dad doesn't work hard enough.

Maybe "smart enough" is more appropriate.

When I reflect on my 40 years on the stock exchange, I can chronicle shopping lists of shunned opportunities that could have assured me a life of princely pleasures. But, as an old business adage warns, he who looks back with regret usually dies of remorse.

If you include my three years' experience as an articled clerk, I have been working uninterrupted for 43 years. And at present I am toiling harder and longer than ever before. Admittedly, I relish my job, especially the stresses and strains linked with navigating the unpredictable course of financial markets, but packing it in simply because my bones are beginning to creak is not a decision I can take lightly.

I have had no illusions about the vast measure of savings required to retire, without wanting to compromise my lifestyle. It's a daunting prospect considering that modern medicine, regular exercise and healthier eating can extend life expectancy well beyond the fitness of plans to finance it. While I have fortunately achieved a reasonable level of success, like the majority of salary, fee and commission earners, I am conscious that ceasing work would bring to an end a vital income stream, and my future survival would depend critically on the scale of my nest egg.

Worse still are the current uncertainties in financial markets, the grave sacrifices needed to repair the imbalances in the world's leading economic regions and the toll these issues are having on investment returns. It could take years before business conditions normalise. In the meantime, interest rates could remain skimpy for longer and yields on equity and property investments appreciably below their historical average.

In South Africa. our stock market is trading beneath levels reached four years ago, faring a little better than the US, where the major indices have produced negative returns over the last decade. My deep-seated worries are not about whether I can adequately grow my savings. Over the years I have learnt that, despite doom and gloom, there are always investments that can beat the odds.

Consider, at the moment, countries like the BRIC nations (Brazil, Russia, India and China) that are growing rapidly and increasing their influence in the global market-place. Investing in companies exposed to trade in these regions offers you the only serious alternative to shielding your capital and generating real profits.

Rather, my concerns are about the welfare of the next generation and whether, in the tough and challenging times that lie ahead, young couples with hopes of buying the proverbial home in the suburbs with the white picket fence can possibly realise their dreams without the benevolence of their parents or other prosperous relatives.

For the first time, at least since the Great Depression, the standard of living in the developed world is destined to fall as real wages (adjusted for inflation) decline and countries embarking on austerity programmes lower spending and trim social benefits.

Sure, with technological advancements slashing the cost of communication, computers, clothing, entertainment and travel, it's hard to imagine that today's under-40s are worse off than their parents or grandparents. But why then do I repeatedly thank the Almighty that I am not young and starting out again? Because, even though property values are sliding, the price of housing is beyond the reach of most young couples. Jobs are less secure and harder to find, while the withdrawal of government subsidies is pushing up the cost of education, particularly at tertiary level.

Maybe the youngsters have set the bar too high and are not willing to scale back their ambitions or, more to the point, are suffering the penalties of extravagant credit-driven growth and wasteful social programmes introduced by their elders over the past 40 years.

So, in the spirit of good family relations, wisely summing up all the arguments, I am happy to reach a compromise with my dear son and his soon-to-be bride, Sarah. I will continue to sweat and toil all day trying to squeeze out a living in these testing and tumultuous markets, while I finance his studies. But, be warned, as soon as the money runs out, mom and dad are moving in.