A sharing by Ling Sing Lin
An Opinion piece in The Straits Times of 29 May 2024 (from the Economist Newspaper) was about rich and stingy baby boomers. It was written from the global perspective. I was itching to give my personal perspective.
ST Opinion Piece
The piece states that baby boomers, born between 1946 and 1964, have deep pockets. This is credited to their growing up during years of strong economic growth. They are now moving into retirement. Not only are they not spending their wealth, they are trying to preserve it or even to grow it. Many die rich.
Some reasons given for such miserly behaviour include saving for old age medical expenditure because of longer life spans. Another is that they want to pass the money to their children, ie bequest motive, as they feel that their children are struggling financially.
A letter on Forum Page of ST dated 31 May 2024 felt that the Economist article’s generalisation of boomers being rich was unhelpful, as not all boomers are rich. It could give rise to resentment and envy among younger generations.
The Silent Generation (1928-1945)
The Economist had mentioned that boomers are more miserly than the generations before. My perception is that pre boomers or the Silent Generation were generally poor, having just survived the Great Depression years of 1929-1939. Our ancestors migrated to South East Asia because of straightened economic circumstances. I believe they had to be miserly because of circumstances.
Boomers (1946-1964)
Many boomers recall childhoods spent in poor neighbourhoods, where we often created our own games and toys. Boomers who have made good can decide to live very well, or reasonably well, within or below their means. I believe that on average, many Singapore boomers probably live below their means. Are they being stingy?
Gen X (1965-1980) and Millenials (1981-1996)
The boomers’ offspring would belong to these categories. They have grown up in more comfortable circumstances than their parents. However, they struggle to buy private property and cars. Despite that, their spending patterns are different from that of their parents. Ordering regular food delivery and practically daily on-line purchases are the norm (cheap, but is it really needed?), Daily handcrafted coffees, business class flights, etc.
My Take
On average, the boomers are more thrifty than their offspring. Some boomers can afford business class travel, yet eschew this. They reach their destinations at the same time, after all. Why pay more if you get something reasonably good for a lower price. It makes sense to get value for your dollar.
To me, stingy is a step down, applying to how we spend our money on others. Whether you call boomers stingy, thrifty, miserly, frugal or what have you, they generally die rich. Boomers’ offspring are in luck! Many of them, unfortunately, may spend their inheritances with impunity! The money won’t even last till the third generation!
lingsinglin
Dr Ling Sing Lin is a medical doctor by training. She worked in MOH HQ for many years, in policy making and administrative positions, until her retirement.
