Baby boomers 17 times wealthier than millennials

Baby boomers 17 times wealthier than millennials

The wealth gap between generations "should be causing the Government sleepless nights", experts have warned.

The net household property wealth of those aged 60 to 62 is 17 times greater than those aged 30 to 32, according to analysis by the Office for National Statistics.

The average 60 to 62 old has net household property wealth of £165,000 compared to just £10,000 for those half their age.

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A decade ago those aged 60 to 62 had just six times the property wealth of those aged 30 to 32 but this gap has since expanded rapidly.

Rachel Griffin, tax and financial planning expert at Old Mutual Wealth, said: "The long-term implication of this wealth inequality should be giving the government sleepless nights. A deadly cocktail of childcare costs, rising tuition fees and unaffordable housing have created a generation who may right feel their outlook is bleak."

The report showed those age 30 to 32 also had the lowest median net personal financial wealth at just £750, compared to £17,500 for those double their age – some 23 times greater.

While the report found real household disposable income was up 1 per cent - the first increase in more than two years - consumers’ perceptions of their own finances had worsened.

Ms Griffin said raising the inheritance tax gifting allowance would be one measure which could help narrow the wealth gap. She said: "Had the allowance, which has been unchanged since 1981, tracked inflation, it would now be permissible to gift £10.9m per tax year."

A survey of 500 people aged 55 or over, carried out by Old Mutual Wealth, found 60 per cent would pass on more wealth during their lifetime if the allowance was raised.

Ms Griffin added: "Even increasing the allowance to £11,000 could immediately cascade £82.6m to younger generations."