/ Money, Technology

Life in 2030 – what does the future hold?

Robot in box

What will your finances look like in 2030? If you’re anything like me, you’ll probably find it hard to imagine one year in advance, never mind 17. Yet, we’ve been looking into the future – what will the economy look like?

While looking at economic trends has been a mainstay of business and government for years, consumers’ individual finances are often left out of the picture. Our new ‘Consumers in 2030’ report uses economic modelling and trend forecasting to think about what consumers are going to need from Which? in the year 2030.

The UK economy in 2030

The results paint a pretty gloomy picture. By 2030 we still won’t have escaped the clutches of the present recession, which means the UK’s economy will have endured the weakest recovery from a depression since the 1920s.

Consumers in 2030 projectionOur finances will be characterised by low annual income growth and high commodity prices. Wages will be kept down by high residual unemployment, and the cost of commodities will be driven up by competition from three million new members of the global middle class.

As a child of the booming 90s and early 00s, I find it hard to imagine the impact that sharply rising commodity prices will have on my quality of life.

The idea that rising food, utilities, and housing prices will mean that I spend over 65% of my income in 2030 on essential goods seems hard to fathom. That’s a higher proportion than it was in 1964, when comparable records began. Never mind missing out on my daily soya latte – how will I ever afford a house? And if I were to get a house, how will I afford childcare?

Financial innovations in 2030

While it’s easy to get depressed when looking at the numbers, I don’t think it needs to be all doom and gloom. After all, human ingenuity is hard to account for in economic predictions, and in a networked society there’s enormous potential for online platforms to foster innovation.

As a member of the ‘millennial’ generation, I’m the kind of person who is happy to manage my life (and my finances) collectively and online. It makes sense to me that alternative and collective lending schemes will become increasingly popular

The big idea likely to gain in popularity over the 21st century (and potentially to solve some of my problems) is the collective home purchasing scheme. With high rents and prices making it increasingly hard to save, a scheme that allows online ‘teams’ of home-buyers to take out low-interest loans and support one another to make repayments, will be an attractive solution.

The idea is that these schemes would provide a collaborative route to home ownership for people who aren’t eligible for a traditional mortgage. For example, groups of young people would be able to use the scheme to pool their resources and support each other to make regular mortgage repayments, despite the challenging employment market.

On the other hand, these alternative financial schemes raise new questions for consumers and organisations like us here at Which?. For example, what new forms of regulation might be needed to give customers assurance in peer-to-peer lending? How will online investors ensure that the data that enables them to assess potential borrower’s credit worthiness is reliable? How will the development of alternative banking models impact on the services offered by traditional banks?

Our Consumers in 2030 report sees us sharing our ideas about the key challenges and opportunities consumers will be facing in 2030. But what do you think the world will be like?

Comments
Guest
Ted Venables says:
8 February 2013

Am I right in saying that people in 2030 will live to be, on average, around a hundred and thirty years old? I’m not sure our economy would be able to sustain a pension bill that size. Then again, the government has just announced that state pension reforms will start this year, so it looks like they’re preparing early.

Guest
Christian Arms says:
8 February 2013

I, for one, am very pleased that you have asked a group of hypothetical questions on a series of random topics to some people about future events that may or may not happen. I, for one, am glad that it won’t be all doom and gloom or it will be.

Guest

Hello Christian, we wanted to give a snapshot here and hear your thoughts about the problems we might face in 2030. You can see more detail in the report itself: http://www.which.co.uk/about-which/who-we-are/quarterly-consumer-reports/consumers-in-2030/

Guest

You will spend 65% of your income on essential goods? When I married and bought my first house, 100% of my income went on essentials – no holidays, secondhand furniture, old car to get to work. Childcare? My wife brought up the family. I think our expectations as to what we deserve can be too high.
Employment is coming down currently, not going up.
Less money spent on wasteful public services will help make us more competitive. If we become more competitive as a nation, we will become wealthier – that is the nature of the world.
So let’s realise that we have to work for what we want, and go without some things to do that.

Guest

You may like to share our table on Twitter:

In 2030, 65% of your spending will be on essentials (food/housing/transport etc) whi.ch/Xd0MZl #Consumers2030 twitter.com/WhichConvo/sta…

— Which? Conversation (@WhichConvo) February 8, 2013

Guest
richard says:
9 February 2013

I really don’t care – I’ll be DEAD

Guest

I’m hoping for smart traffic lights, one’s that can detect there’s zero cars on the green light, and a very long queue stuck on the red and will change.

Guest

There’s a fancy video I’ve seen where electric cars can charge while driving on the road through some kind of electric induction. I’d like to see that become a reality

Guest

Some electric trams use