|Date:||30 September 2016|
|Authors:||Jonathan Cribb , Andrew Hood and Robert Joyce|
In their early 30s, people born in the early 1980s have average (median) net household wealth of £27,000 per adult – including housing, financial and private pension wealth. This is about half the median wealth that those born in the 1970s had at around the same age (£53,000).
This is among the main findings of new IFS research published today, which for the first time looks at both the overall household wealth and total income of different generations.
It looks like those born in the early 1980s are likely to find it harder than their predecessors to build up wealth in housing and pensions as they age. They have much lower home-ownership rates in early adulthood than any other post-war cohort, and – outside the public sector – have much less access to generous Defined Benefit pension schemes than previous generations did at the same age.
Other findings include:
Andrew Hood, an author of the report and a Research Economist at IFS said: “By the time they hit their early 30s, those born in the early 1980s had about half as much wealth as those born in the 1970s did at the same age. Sharp falls in home-ownership rates and in access to generous company pension schemes, alongside historically low interest rates, will make it much harder for today’s young adults to build up wealth in future than it was for previous generations.”
Notes to Editors:
The Economic Circumstances of Different Generations: The Latest Picture by Jonathan Cribb, Andrew Hood and Robert Joyce has been published on the IFS website here: https://www.ifs.org.uk/publications/8583
Funding for the research from the ESRC-funded Centre for the Microeconomic Analysis of Public Policy at IFS (grant number ES/M010147/1) is gratefully acknowledged.