NatWest Chairman Shows How Out of Touch Banks Can Be

<p>Now we know. On their current salary, young people – Gen Z – can quite
easily buy a house in the UK. It’s not a big deal.</p><p>In the timeless words of NatWest Group Chairman Sir Howard Davies,
"You have to save, and that's the way it always used to be." Easy,
peasy, right? Banks aren’t out of touch, at all.</p><p>The aftermath of his seemingly tone-deaf remarks on the ease of
purchasing a house in the current UK market is a masterclass in how not to
discuss the housing crisis that effects many parts of the world. The NatWest
executive faced a torrent of criticism, highlighting the glaring disparity
between executive perspectives and the struggles of the average citizen in the
turbulent property landscape.</p><p>"Save and Buy a House": A Reality Check</p><p>Sir Howard Davies, chairman of NatWest Group, recently offered his unsolicited lesson in financial wisdom during a BBC Radio 4 interview. When
questioned about the challenges of getting on the property ladder, Davies
casually remarked, "I don't think it's that difficult at the moment."
Cue collective eye rolls and raised eyebrows.</p><p>In an era where property prices seem to defy gravity, The NatWest Group chairman suggested
a straightforward solution, saving, saying “"You have to save and that's
the way it always used to be." </p><p>Unsurprisingly, his comments didn’t sit well with those grappling with
exorbitant rent and elusive property dreams. Presenter Amol Rajan's incredulous
response summed it up perfectly: "Are we living in the same country?"</p><p>Younger Workers Calling for Salary Transparency</p><p>All this is unfolding against a backdrop <a href="https://blog.adobe.com/en/publish/2023/09/27/adobe-future-workforce-study-what-us-employers-need-know-about-gen-z-workplace">where
8-in-10 younger workers have expressed a willingness to openly talk about their
earnings at work</a>. Gen Z and millennials, spearheading a push for salary
transparency. </p><p>Now, before you scratch your head wondering if this is a good thing, if
you’re not the boss, why isn’t it? If you’re the boss … let’s hope your pay
scales make sense.</p><p>The close of all this is that younger workers – who will be in the
workforce for a long, long time – have decided, rightly or wrongly, that they’re
getting the bad end of the deal. So, much so that they’re starting to question
just what income scales with social class these days.</p><p>What Is A Middle Class Salary?</p><blockquote cite="https://www.tiktok.com/@fmsmith319/video/7316964425703918894" data-video-="data-video-"><a target="_blank" title="@fmsmith319" href="https://www.tiktok.com/@fmsmith319?refer=embed">@fmsmith319</a> <p>Gen Z doesn’t agree 74k is middle class</p> <a target="_blank" title="♬ original sound – Freddie Smith" href="https://www.tiktok.com/music/original-sound-7316964468721109806?refer=embed">♬ original sound – Freddie Smith</a></blockquote><p>Case in point: Freddie Smith, a real estate agent, went viral talking
about a Newsweek survey that surveyed 1,500 participants. The findings of which
are telling—<a href="https://www.newsweek.com/gen-z-middle-class-salary-difference-money-views-1854720">only
41% of Gen Z considers $74,580 a middle-class salary</a>, showcasing a stark
contrast with the perceptions of older generations. As the workforce leans
towards openness, the clash between traditional financial perspectives and
evolving expectations becomes all too apparent.</p><p>Watch this space. Don't be like NatWest.</p>

This article was written by Louis Parks at www.financemagnates.com.