Bank of Ireland suggesting people should move back to their parents to save the deposit?

[MrEarl]

Hello,

I could not believe this when I heard about it first, it's complete nonsense.

Simple fact of life - if you want to buy something expensive, you work hard and make sacrifices, to save and get it.

It's obvious that if you can move back in with your parents and live with them at a lower cost than living away from home, then that's what you should do. I'd imagine it's what a large percentage of home owners in the country did before they got their first step on the ladder.

It's probably the same group of people that are out drinking gins that I've never heard of out of goldfish bowls with various pieces of fruit and veg floating around in them at €10-€15 per drink, that are crying about this advert.

I really wish someone would silence the whingers

 

[Gordon Gekko]

I listened back to Brendan's appearance on The Last Word; I have never heard such rubbish in my life (from the other contributor).

So moving back in with one's parents is a good idea but it's politically incorrect to suggest it because not everyone can do it?

The world has gone utterly mad...Generation Snowflake!

 

[Brendan Burgess]

I listened back to Brendan's appearance on The Last Word; I have never heard such rubbish in my life (from the other contributor).

Thanks for the clarification.

Some of these views are so illogical, that it's hard to know where to start arguing against them.

I had planned to ask her if she thought it was a bad idea to move back in, but before I could do so, she had commended the woman for doing so.

The newspapers were just as bad: Here is what the Indo said:

Bank of Ireland has come under fire for promoting questionable financial advice online.

Brendan

 

[PMU]

However, the intergenerational transfer of wealth is correct.

Every welfare payment was cut twice during the crisis EXCEPT the State Pension

No. It's not correct. 'Wealth' is your net worth of tangible assets (i.e. total assets minus total liabilities). Transfer payments are not wealth transfers.

Of course there are intergenerational wealth transfers in Ireland. They are called inheritance. There are significant intergenerational wealth transfers (i.e. assets) but they are from the older generation (i.e. when they die) to their descendants and these transfers are increasing. And it's not just direct descendants that benefit. According to Revenue, inheritance tax receipts, i.e. transfers from the deceased to the exchequer, are up about 23% in the past 9 years. http://www.revenue.ie/en/corporate/documents/statistics/receipts/cat-receipts.pdf.

My retired parents are undertaxed, yet they have 400-500k in financial assets, excl their house!!

Without being morbid on it, you and your siblings will get that wealth as an intergenerational transfer when your parents pass away, and society as a whole will benefit through inheritance taxation.

 

[Gordon Gekko]

"Walking is a good idea"

"How dare you suggest that people should walk; what about people with no legs?"

 

[Protocol]

PMU,

no CAT payable on 750 k assets as three children.

 

[Protocol]

PMU,

what I meant about the State Pension was it is an example of how the older were treated better than the younger during the crisis.

All welfare payments were cut twice, except the State Pension.

So transfers to pensioners were protected, at the expense of all non-pensioners.

Similarly, cuts to PS worker pay were more than the cuts to PS pensioners.

 

[PMU]

PMU,

no CAT payable on 750 k assets as three children.

Great. Isn't it just great that you can inherit this amount in an intergenerational wealth transfer without paying CAT?

PMU,

what I meant about the State Pension was it is an example of how the older were treated better than the younger during the crisis.

All welfare payments were cut twice, except the State Pension.

So transfers to pensioners were protected, at the expense of all non-pensioners.

Similarly, cuts to PS worker pay were more than the cuts to PS pensioners.

While I've no real experience in this area, and what you say is correct, it would appear that Ireland's state pensions are generous, particularly for low earners where the pension replaces 70% of average incomes. Occupational pensions just don't do this. But for average earners it's rather low at 42%. http://www.oecd.org/els/public-pensions/pensionsataglance.htm. But I think this is symptomatic of faults in the Irish welfare state, where benefits appear to be excessively skewed those at the bottom at the expense of those at the middle.

But let's not get too worked up about state pensions. In Ireland, according to the above OECD source, public expenditure on state pensions is 5.3% of GDP; i.e. about the same as in the UK and less than the OECD average of 7.9%. By no reasonable standard can this be regarded as a massive inter-generational transfer of funds from the non-retired to retirees, at this point in time.

Again, my basic point is that intergenerational wealth transfers do occur but they go from retirees when they die to the next (i.e. younger) generation, when their estates (typically the family home) are inherited by their descendants. Prudent management of inheritances can lead to a cascade of wealth falling down through future generations.