Britons Born in 1960s and 1970s Relying on Inheritance, IFS SaysSvenja O’Donnell
Britons born in the 1960s and 1970s are no better off than their predecessors and are relying on inherited wealth, according to analysis by the Institute for Fiscal Studies.
Compared with those born a decade earlier at the same age, people now in their mid-30s and 40s are no better off in terms of take-home pay and savings, the London-based research group said in a report published today. They are also likely to have less generous pensions and be less likely to own a home.
“The incomes and wealth of those born in the 1960s and 1970s look no higher than the cohorts who came before them,” said Andrew Hood, a research economist at IFS and an author of the report. They “are likely to have to rely on inheritances to be better off in retirement than their predecessors.”
The report may fuel the debate about the cost of living in the U.K. as inflation continues to outpace wage growth. The IFS said workers had seen little income growth over the past decade, halting an upward trend since World War II.