Personal Pension  

South Hams named UK ‘baby boomer’ hotspot

South Hams named UK ‘baby boomer’ hotspot

One in three people from South Hams in Devon are aged between 50 and 68, making it the ‘baby boomer’ capital of the UK, according to Aegon.

The term relates to the increased birth rate following World War Two and has been defined specifically as the generation born between 1946 and 1964.

As the last of this generation turns 50 this year, the pensions and investments specialist looked at official population statistics from more than 400 local authorities to identify the areas of the country with the highest proportion of those at or nearing retirement.

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There are 14m baby boomers in the UK today, accounting for almost 22 per cent of the population, and they are distributed across the country.

However, the report identified the south west of England as home to seven of the top twenty ‘hot spots’. As for the parts of the country with the lowest proportion of baby boomers, the majority can be found in London, with just 10.5 per cent of the population in Tower Hamlets aged between 50 and 68.

Aegon also provided life expectancy figures for 65 year olds. Across the top 20 hotspots, those aged 65 today can expect to live another 20.5 years, or to the age of 85.5, meaning many people will spend twenty years or more in retirement.

David Macmillan, managing director at the firm, called this one of the most “significant” demographic trends of the last century.

“One of the main features of this group is their economic clout, with much of the nation’s wealth concentrated in the hands of a generation that by in large benefited from stable economic conditions, the rising property and equity values and defined benefit pension provision over the years.

“As well as being significantly better off than previous generations, the baby boomers are also much healthier. However, this also poses challenges as savings will need to last a significant period of time and money must be carefully managed.”

Mr Macmillan pointed out that the pensions industry and financial advisers must support those approaching retirement and guide them through the changes coming in from next April.

peter.walker@ft.com