| The disparities in wealth accumulation between the generations are striking | Today, younger generations hold just 4% of total UK wealth | Almost half of UK adults worry they won’t have enough saved for retirement |
Throughout our lives, we both give and receive support across generations, whether within our families or as part of society. This concept, known as the intergenerational contract, ensures that different generations support each other based on their needs and resources. However, with shifting economic conditions and demographic changes, this balance is increasingly under strain.
In addition, the UK’s population is ageing rapidly. By 2040, nearly a quarter of people will be aged 65 or older, compared to just under one in five today1.
Striking disparities
The disparities in wealth accumulation between generations are striking. Over the last two decades, UK household wealth has doubled relative to incomes, but older generations have benefited disproportionately. Between 2010/2011 and 2019/20, median total wealth for those aged 65 to 69 rose by 46% (£112,597), while those in their late 30s saw only a 9% increase (£6,751). Today, younger generations hold just 4% of total UK wealth, down from 7.5% in 2010. Despite this, seven in ten adults receive no financial support from their families.
Concerns about financial security
A recent survey2 highlights growing concerns about financial security. Almost half (47%) of UK adults worry they won’t have enough saved for retirement, rising to 60% among those aged 25 to 49.
With nearly a third (29%) of people fearing they won’t have family members to rely on for support, it is crucial to think about how wealth is shared across the generations.
Secure your family’s financial future
If you’re concerned about intergenerational wealth and how best to support your loved ones, talk to us about strategies for effective wealth transfer and long-term financial planning. By making informed decisions now, you can help create a more secure financial future for the generations to come.
1&2ILC 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
