One in five baby boomers worth £1m after years of rising fortunes

ONE in five “baby boomers” is now a millionaire, analysis of official data shows, as they have benefited from rising house prices, stock market gains and generous pensions.

The percentage has almost tripled since the years before the financial crisis, when seven per cent of over-65s were worth £1 million, according to data from the Office for National Statistics (ONS).

In 2006, those aged over 65 owned just over a quarter of the UK’S household wealth, increasing to a third 10 years later.

The amount of wealth in real terms owned by those nearly doubled in that time period, growing from £2.4trillion to £4.7trillion. In the same period, total UK wealth increased from £8.5trillion to £12.8 trillion.

The over-65s have increased their wealth twice as fast as the average UK household, which saw a 51 per cent rise. The value of assets owned by those aged 25-34 and 35-44 has remained almost static.

The average household headed by people aged 55-64, those who are just younger than baby boomers, also almost doubled their wealth in that period.

This expanding wealth means that the average baby boomer household is worth £1.1million, over three times the national average of £259,400.

Older people typically increase their wealth more rapidly than younger generations, as they tend to be more focused on saving as retirement nears. More unusual is the falling proportion of wealth owned by younger generations.

Those aged 35 to 44 decreased their share of the national wealth by five per cent between 2006 and 2016, while millennials, defined as those aged 25 to 34, saw a two per cent fall.

A policy to give every 25-year-old £10,000 was last year suggested by the IPPR (Institute for Public Policy Research) think tank as a way to address the discrepancy in wealth between older and younger generations.

Called a “universal national inheritance”, the plan would give a one off payment of £10,000 from 2030, which could be spent on education, to start a business, or to invest in property.

The IPPR suggested the UK should start a “Citizens’ Wealth Fund” to support the measure, similar to the sovereign wealth fund in Norway, built from the proceeds of the country’s oil production.

Charlotte Ransom, founder of Netwealth, who analysed the ONS figures, said: “Attaining the title of millionaire is a financial pipe dream for the majority of people in the UK.

“However, Netwealth analysis shows that this has become a reality for a fifth of all over-65s as they’ve benefited from several decades of economic boom, soaring property prices and final salary pensions.”

‘Attaining the title of millionaire is a financial pipe dream for the majority of people in the UK’