One in five baby boomers are now millionaires as their wealth has nearly doubled over ten years, new analysis shows.
Decades of soaring house prices, economic growth and final salary pensions mean that 20 per cent of over 65s have a wealth of £1million or more in real terms, up from just 7 per cent in 2006.
But while baby boomers are the group to have experienced the greatest rise in their household wealth, younger generations have seen a much more modest increase.
Generational divide: Baby boomers share of the UK’s total wealth has increased, while younger generations’ share has fallen over the ten years to 2016
Analysis by wealth manager Netwealth shows that the total wealth owned by over 65s nearly doubled – from £2.4trillion to £4.7trillion – in the decade between 2006 and 2016.
In comparison, those between 25 and 54 years old saw their wealth increase by just 9 per cent in real terms during the same time.
Netwealth’s chief executive and founder Charlotte Ransom said: ‘Attaining the title of “millionaire” is a financial pipedream for the majority of people in the UK.
‘However, this has become a reality for a fifth of all Baby Boomers as they’ve benefited from several decades of economic boom, soaring property prices and final salary pensions.’
Baby boomers and those born shortly after them have enjoyed the biggest increases in wealth
Baby boomers have long held the title as the UK’s wealthiest generation.
But in the ten-year period they have consolidated their position, growing their share of the UK’s total wealth, while younger households have actually watched theirs fall.
In 2006, over 65s owned 28 per cent of the UK’s total household wealth, according to Netwealth’s breakdown of the latest available household wealth figures by the Office for National Statistics
Generation X have seen their share of total wealth fall by 5 per cent over the decade
However, over the course of a decade this has increased to over a third of total UK household wealth, reaching 36 per cent.
That means that for every £1 of UK household wealth, baby boomers own the biggest share of 36p.
On the contrary, Generation X, or those aged between 35 and 44 have seen their share of total wealth fall by 5 per cent over the decade – from 15 per cent in 2006 to 10 per cent in 2016.
Millennials – those aged 25 to 34 – have also seen their share of wealth decline to a low of 3 per cent, meaning they owe just 3p for every £1 of household wealth.
Households born shortly after the baby boomers – or those who are now between 55 and 64 years old – have seen their share of wealth stay the same.
However, their wealth has doubled over the ten year period as that’s usually the age when people reach their peak incomes and focus on saving ahead of retirement.
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