Generation Y, those born between 1980 and 1994, are changing careers more than previous generations. They are post-linear in their job outlook, and will work across multiple jobs and sectors throughout their career.
They are an entrepreneurial generation, largely because they have the technology enablement to start businesses or to find new roles. They are able to plug back into education more regularly to upskill or retrain.
The flexibility of this life stage enables Generation Y to try new endeavours. They have a little more financial backing during this particular life stage, and they don’t have the same commitments as they move into their thirties as their parents did at the same age, like children and mortgages. This has enabled them to be more career mobile than their parents were at the same age.
The downside of heading out from a stable job to try something new is that it might not work out financially. The challenge of not having a mortgage to pay is that it can leave the thirty-somethings, perhaps when they are in their forties, further behind financially than where their parents were at the same age.
And so while it’s not as exciting to join the career ladder and climb the rungs, it does provide the benefit of long term earnings. Locking into the mortgage does have the asset-appreciation benefit, and therefore a retirement vehicle that we know is important as Australians move into the later years of their life.